All Forum Posts by: Shaival Patel

Not really sure how this advice was about breaking the law. When someone novice like me comes across a fork in the road, like I am here, I seek advice of people who are knowledgable in the matter. The question was about how legally binding "abscence of any rule of STR in code means it is prohibited". If a city prohibits or has some permits, the answer is obvious. Its not like STR regulation have been in existence forever. I am sure some of have seen the evolution of restrictions being wrenched up over years. But are there any legal structures exist where it could be of shield before city explicitly comes out with an STR regulation (for example an LLC). And in asking for any advice, its my job to explain the incongruency and inconsistency I am trying to resolve.

The city codes mentioned were verified by calls

to different cities.  And yes totally agree with verifying and reverifying before a big investment.  

I am located in Cypress, CA (north OC area). I have been exploring different markets for my first STR. Initial preference…. stay close to Orange County area/self manage. But each city in OC has different restrictions. Most baffling of issues is some cities have no STR mention in their codes but they claim that omission of STR is implied prohibitive in the city. Other cities require owner on premise to host, others have limited permits which are waitlisted. As you see, its all over the spectrum.
So is there legal way to get around STR restrictions on SFR? I have come across listings in all the cities where STR is restricted, and/or prohibited. What does that legal framework look like? And how risky it is to pursue one of these locals knowing city's take on STRs?

Hi,

I am looking to invest in STR primarily to utilize Tax benefit but also secondarily to diversify. Based on my readings, it seems imperative to maintain Cash flow through STR. Any advice if Sedona is a location that seems conducive to such a proposition. Regulations seems reasonable in Sedona but again my comparison point is Palm Springs CA. Initially was thinking closer to LA … Palm Springs, Big bear, Joshua tree etc. But more I dig, I am more convinced to venture to AZ. Scottsdale is also of interest. My budget is about $1M with leveraged financing.