The Strategic Way to Invest in Real Estate: Short Term Rental Properties
Our strategy is refreshingly simple and boring. Focus on the Short Term Rental experience for guests, 5 star reviews, keeping our expenses low, automate what we can and build in systems and processes for repetitive tasks.
We will help you find the right property to invest in, add our professional design techniques, and even manage the short term rental. We are your one stop shop in San Diego.
We have a simple but proven strategy. 15 points to take into consideration...
$200+ Per Night Can this property fetch at least $200 bucks a night? If so, we’re on it like hotcakes. Q1 2022, we’re trending at $300+.
Under $750,000 Homes We prioritize staying sub the $750k range as to protect against downside risk. With some outliers of course. We know our buy box because we know what works.
10%+ Cash-on-Cash During underwriting, the property must produce at least 10% Cash-on-Cash and maintain an upward projection.
20%+ Annual ROI It should hit at least 20% ROI as an average over the first 5 years (cash + equity + tax benefits). Typically, by year 3.
Low Seasonality We invest in San Diego because we have very little swings of seasonality. A little bit of seasonality is normal but for the most part, we can see bookings year round.
Underwriting 5 Ways Us. Lender. Property Management. Us Again. Lender Again. It's important to have multiple eyes on a property. One can think it's a fantastic investment but our team knows what to look for. We know what rents well.
Cost Segregation Cost what? Essentially a tax strategy to increase the pace of depreciation. Who wants to pay taxes when you can be smart about it? Our properties see 25-35% write offs. We can connect you with a cost segregation specialist to maximize your investment.
Accelerated Depreciation Yup, more tax savings. We want tax free cash flow after all. So, we look for those opportunities.
Multi Platform Exposure Can we list this type of property across multiple channels?
Adventurous Experiences Markets near national parks, destinations and/or outdoorsy tend to outperform.
Long Term Rental Friendly We underwrite as an STR, MTR and LTR just in the event we need to quickly adapt.
Diversified Business goers, travelers, adventure seekers galore. All are welcome.
Short Term Rental (STR) Friendly Areas This one is a must. We don't hold every property we buy but we always need a plan B. If we can't sell a property our backup plan is to turn the home into short term rental. If you can't do a short term rental, the property usually does not cash flow enough to rent long term.
Occupancy Can this property perform “Ok” in the event of lower than expected occupancy? Sub 50%. We need to have that backup plan. What if short term rentals are banned?
Unique How can we make this “pop” off the screen? Guests take 7 minutes before picking a spot.
Call, text or email our team to discuss your next investment.