@Ryan Rubel There are certainly quite a few restrictions in those two areas, in Carlsbad you have to be within the coastal Zone...I have a multifamily in Carlsbad Village a block outside of the coastal zone so I'm unable to operate it as an STR unfortunately.

Sad, as I am sure I would like the views and the area, but it makes perfect sense practically, financially, and legally.Just curious but what color is the sky in your world John? 

I'll admit upfront that I would never own rental property in CA, so that colors my response.I'd offer the tenant up to $10K to leave immediately, keeping the eviction off their record, then sell.

But H&R Block was "with Watson" at least as way back as 2018!

Lot of the issue stems from pillars / blocks that sit on top of the soil in the crawl.

@Robert Quiroz I think all of the factors you have listed might contribute.So I’m not going to comment on that but I am going to comment on an assumption you made.If 85% of rents are below market on deals you underwrite then those contract rents are probably THE market rent.You can’t just go based upon area median income to rent ratio.First off urban areas are oftentimes street by street, block by block.

Lilia’s breakdown of what to consider before investing is something I wish I’d read when I started.To add some color, I had a client a few years ago who purchased a duplex in Austin with a plan to hold for 12+ years.

Just north of town 10 blocks they built about 100 mini houses about 300 square feet.  

Will put grey epoxy with "colored sprinkles" on the surface to help seal the concrete. 

I like the idea of STR as it seems like it can generate significantly more income than LTR and would allow me to block out dates if I have friends or family come visit.