Is it better to invest in Irvine, San Francisco, Vegas, Johns Creek or the IE?

Where would you choose?

  • Irvine

    Votes: 25 64.1%

  • San Francisco

    Votes: 9 23.1%

  • Las Vegas

    Votes: 4 10.3%

  • Johns Creek

    Votes: 7 17.9%

  • Inland Empire

    Votes: 8 20.5%

  • Santa Ana

    Votes: 4 10.3%

  • Other

    Votes: 8 20.5%
  • Total voters
    39
SoclosetoIrvine said:
How easy/doable do you guys think an investment airbnb in Vegas is?
I just booked an airbnb for july 4th weekend for around $125/night, which got me thinking, how doable is this?  Home prices are still around $250k for a sfr. 

Principal interest around $950 at 4.25% at standard 25% down
property taxes at 1% = $210
figure in $100 hoa = $1300/month

Say you factor in just having it filled for 20/30 days at $125 (which is on the low end there)...$2500/month...take away $500 for the airbnb fees, take away maybe another $300 for cleaning. 

Does $400/month sound about right? or am i missing something?
Click to expand...

I've done the airbnb thing and it's no longer worth it unless you turn it into a fulltime job. Most of the listings in destination cities are run by companies/groups with 20+ units at this point. With that comes the ability to hire full time cleaning staff, maintenance guys, reservations people etc and if they are running things properly it will be much smoother and cost effective than you would be able to do on your own.

That being said, I do have a friend who went out to LV with a couple $mms and bought units at the Signature and Vdara to airbnb. Did so well that he decided to move there full time and is absolutely killing it. He got in a couple years ago, a little late but before things got really crazy.
 
rkp said:
The biggest challenge with short term rentals is that you are whim to the city and local regulations.  Look at all the Anaheim folks that got burned.  This house just popped up in my redfin feed:https://www.redfin.com/CA/Anaheim/1116-Wakefield-Pl-92802/home/3404970

Beautiful place and that renovation made sense for a vacation rental but I think they will be challenged to sell at that price.
Click to expand...

That house is overbuilt for the area. The neighboring houses are single story ranch style with half the square footage.
 
stephen said:
SoclosetoIrvine said:
How easy/doable do you guys think an investment airbnb in Vegas is?
I just booked an airbnb for july 4th weekend for around $125/night, which got me thinking, how doable is this?  Home prices are still around $250k for a sfr. 

Principal interest around $950 at 4.25% at standard 25% down
property taxes at 1% = $210
figure in $100 hoa = $1300/month

Say you factor in just having it filled for 20/30 days at $125 (which is on the low end there)...$2500/month...take away $500 for the airbnb fees, take away maybe another $300 for cleaning. 

Does $400/month sound about right? or am i missing something?
Click to expand...

I've done the airbnb thing and it's no longer worth it unless you turn it into a fulltime job. Most of the listings in destination cities are run by companies/groups with 20+ units at this point. With that comes the ability to hire full time cleaning staff, maintenance guys, reservations people etc and if they are running things properly it will be much smoother and cost effective than you would be able to do on your own.

That being said, I do have a friend who went out to LV with a couple $mms and bought units at the Signature and Vdara to airbnb. Did so well that he decided to move there full time and is absolutely killing it. He got in a couple years ago, a little late but before things got really crazy.
Click to expand...

How many units did your friend buy?  Did he have to pay to furnish the units?
 
rkp said:
The biggest challenge with short term rentals is that you are whim to the city and local regulations.  Look at all the Anaheim folks that got burned.  This house just popped up in my redfin feed:https://www.redfin.com/CA/Anaheim/1116-Wakefield-Pl-92802/home/3404970

Beautiful place and that renovation made sense for a vacation rental but I think they will be challenged to sell at that price.
Click to expand...

Look at the school ratings for this property, yikes!
 
School ratings aren't as important to everyone as they are to the avg Irvine buyer.  Also, areas could be changing rapidly and the ratings will take time.  Growing up in WLA, Culver City was not great but now has some of the best schools in the westside and has some of the highest $/sq ft.  I am not saying Anaheim is experiencing that but scores do need to be better analyzed. 
 
USCTrojanCPA said:
stephen said:
SoclosetoIrvine said:
How easy/doable do you guys think an investment airbnb in Vegas is?
I just booked an airbnb for july 4th weekend for around $125/night, which got me thinking, how doable is this?  Home prices are still around $250k for a sfr. 

Principal interest around $950 at 4.25% at standard 25% down
property taxes at 1% = $210
figure in $100 hoa = $1300/month

Say you factor in just having it filled for 20/30 days at $125 (which is on the low end there)...$2500/month...take away $500 for the airbnb fees, take away maybe another $300 for cleaning. 

Does $400/month sound about right? or am i missing something?
Click to expand...

I've done the airbnb thing and it's no longer worth it unless you turn it into a fulltime job. Most of the listings in destination cities are run by companies/groups with 20+ units at this point. With that comes the ability to hire full time cleaning staff, maintenance guys, reservations people etc and if they are running things properly it will be much smoother and cost effective than you would be able to do on your own.

That being said, I do have a friend who went out to LV with a couple $mms and bought units at the Signature and Vdara to airbnb. Did so well that he decided to move there full time and is absolutely killing it. He got in a couple years ago, a little late but before things got really crazy.
Click to expand...

How many units did your friend buy?  Did he have to pay to furnish the units?
Click to expand...

Started off with 5 and ramped up from there. Not sure how many he's at now but last time we talked he was thinking of expanding to other cities. I believe the initial units purchased at the Signature came furnished, picked each up for ~$150k.

One other thing to mention is the clientele for airbnb is rapidly changing. It used to be techies/hipsters/early adopter types that just wanted a cool place to stay that wasn't a typical chain hotel. They'd be OK with offbrand toiletries, maybe a couple missed spots on the mirror or a missing hairdryer - this crowd really understood the initial mission, spirit and vision of airbnb and the sharing economy.

Now that it has gained popularity, particularly among the older crowd who weren't around in the early days of airbnb and don't really "get" the sharing economy, people are expecting 4-5 star hotel level service. Guest management is a much bigger headache than it was before, so plan accordingly.
 
If you really want to buy a nice SFR in Anaheim area, take the 57 FWY exit Lincoln, go East on Lincoln then turn left (North) on Kingsley just before the Santa Ana river.  Drive around that area and you will find some nice looking older SFR's on decent sized lots.  There's a nice park attached to Rio Vista Elementary and Santa Ana river trail is next door.  In case of emergency you can draw water from it for boiling and filtering.  School district for secondary school will be Placentia, though ranking isn't very high.

If you go north to Placentia check out area around intersection of Rose Dr and Alta Vista (at higher elevation compared to train tracks).  There are some nice newish big golf course properties but on small lots.  Anaheim Lake and Santa Ana Riverlakes are nearby for emergency water supply.  Anaheim Canyon Train station and brand new Kaiser hospital on La Palma is within very short driving distance.

If you drive East on La Palma from there you'll hit Yorba Regional Park.  Looking north from the park (Esperanza?) you will find SFR's along hill side with decent sized lots.  I like the park and it's next to the river, however if we ever get a 500 year storm and the river overflows, you'd probably want to be higher up on the hill.  This area is Yorba Linda but not too far from Anaheim Canyon train station.
 
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