Ramona M, Home Buyer in San Diego, CA

Need advice about buying a short-term vacation rental condo in Pacific Beach area.

Asked by Ramona M, San Diego, CA Sun Feb 24, 2013

My husband and I are looking for an investment property, ideally in PB but could also branch up to La Jolla or down through OB. Is now a good time to be thinking about this, and do any of you have any caveats or suggestions on this topic? Thank you!

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8
$7,500 per month positive cash flow 4 months out of the year, $1200 positive cash flow the remaining 12 months, NET after all expenses, on a $2200 mortgage pmt with 20% down...

4 months pays the entire expenses of the property in 4 months, try to accomplish that with a standard rental in SD. It cash flows with 0% down, it also cash flows with equity cash out....

Short term vacations rentals in the right areas can be extremely profitable.
1 vote Thank Flag Link Tue Jul 2, 2013
"Cash-flowing quite positively" -- that doesn't tell us if it's a good investment. Consider this, just about everything cashflows when you pay all cash, or put 50% down, doesn't make it a good deal. It's about return on investment and vacation rentals don't yield the kind of returns that a traditional rental would yield.
0 votes Thank Flag Link Tue Jul 2, 2013
I would have to disagree that PB condo's do not make money...as I have a handful of clients that are cash flowing quite positively and have 'not quit their day jobs' in doing so.
0 votes Thank Flag Link Tue Jul 2, 2013
Vacation rentals really do not make money! Unless you're in the vacation rental business, I'd think long and hard before purchasing a vacation rental!
Web Reference: http://www.roycekemp.com
0 votes Thank Flag Link Mon Apr 22, 2013
Hi Ramona,
I would love to assist you. I work with lots of investors and manage both long term and vacation rentals in the coastal area. I would also like to suggest Solana Beach and Del Mar. The fair and track season pull a lot of vacationers to that area. Message me directly and we can get started.

Thanks!
Sinead McAllister
Broker/Realtor
McAllister Homes Real Estate
858-205-5215
brokermcallister@gmail.com
http://www.McAllisterHomes.com
0 votes Thank Flag Link Wed Mar 6, 2013
Wow, only 2 answers so far. It's amazing that most realtors are not really into investing. It's the best part about owning real estate. I have been investing in real estate personally for over 10 years. I have also managed beach front vacation rental properties renting it out on a weekly basis during the summer and a monthly basis over the winter. Your profits will come during the spring to summer season, so now is the perfect time to buy a home like this. You will definitely want to get a house instead of a condo. Or, a duplex would be ideal. During the winter months, you will still be able to rent out the property no problem because of the great weather in San Diego, but you may have a negative cashflow for a few months depending on how much you put down on the property. I would love to help you out with this purchase any way I can. Contact me anytime.

Kevin Sanderlin
Keller Williams Realty
Cell 858-212-4702
ksanderlin@kw.com
0 votes Thank Flag Link Wed Feb 27, 2013
Hi again Ramona,

All these locations make for great vacation rentals. Are you looking at a condo or single family home?

With condos, you will be subject not only to the owner occupancy requirements of your lender, but by the cc & r's of the complex. Relatively few complexes allow for weekly vacation rentals....

I invite you to give me a call. I'd love to hep you sort this out.

Cindy 619-379-8616
0 votes Thank Flag Link Sun Feb 24, 2013
I could not agree with you more Cindy. The first aspect a potential property investor should always consider is whether or not they would like to invest in a single home or a condo unit. This is important not only because of occupancy requirements but also they have to put into consideration the amount of time they are willing to dedicate to its upkeep. The larger the property the more time need to invest, I would say talking with agents is always the best place to start in investing.

George Puzo | http://www.sabletHOME.com/sablet-in-provence/
Flag Fri Feb 14, 2014
we're unsure of whether it will be a house or a condo. we are definitely seeing that owner occupancy rules are prohibitive -- our bank requires 70%!!! needless to say, we're exploring other banks for this purchase...
Flag Thu Feb 28, 2013
I've financed quite a few vacation condos in PB lately. I've noticed a lot of Europeaners buying them up in preparation for the summer. I suggest near the bay or PB. Condos under 200k won't rent for much for a vacationer so plan to spend $400k+ but the reward and turn around will astound you. Do you have MLS access? Are you going to need an investment loan? I can help you with both or just one or the other. Recently I sold a home off Ostend and one off Bay View. Lets talk about your plans.

Valli Lopez 01810641
619.916.9595 direct
Valli@thebrikhogroup.com
Web Reference: http://Www.vallilopez.com
0 votes Thank Flag Link Sun Feb 24, 2013
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