With property insurers’ profitability and trade combined ratios improving, we can expect some relief soon.

Quote from @Brandon Foster: Hello Ryan,STR is do able in the north county area but there are a lot of rules and regulations.The city of Oceanside right now will not allow anything STR unless it’s west of pacific coast hwy.This is changing a lot too so you need to be aware of that in your plans.Carlsbad is super strict too but there are some condos that are still available to do STR in.Medium term rentals are as safer bet but way less profitable.

While I don’t yet own investment properties, my wife and I have successfully remodeled and sold a home for a profit, and I’m eager to build on that experience.

With DSTs you need to make sure that the various fees don’t negate your profits.

A knowledgeable attorney can advise here.Create a solid operating agreement: Since you own the condo with a friend, a clear operating agreement is essential to outline responsibilities, decision-making, and profit-sharing for the LLC.To save on costs:Look for real estate attorneys who specialize in investment properties and might offer package deals for the retitling, operating agreement, and filing the LLC.Shop around for title companies that can handle the transfer smoothly and provide competitive rates.Research DIY options for setting up the LLC if your situation is straightforward, though I’d still recommend a lawyer for the transfer process itself.Good luck with the process!

I live in Sacramento, and have noticed that people are offering either equal or above asking price even for homes that sometimes need 80-100k in repairs and I can't see how they would even make a profit doing that.

@Jay Hinrichs exactly the risk is even more than traditional development and the profit is actually less with more operational headaches.

STR is a hospitality business first, and a for-profit business second (if you want to succeed).

The short-term rental market here is particularly lucrative, though regulatory changes can impact profitability. 

$20k/month in profit?