California

Why physicians are looking at San Diego

San Diego is the durability play among California STRs: year-round beach tourism gives it a demand floor that ski towns and festival markets simply don't have. There is no off-season cliff to model around — coastal visitation runs all twelve months, which is why this is the state's top short-term-rental market. For physician investors, the pitch is not maximum yield; it is the most dependable STR demand curve California offers, attached to an asset in one of the country's most supply-constrained coastal metros.

The numbers, interpreted

At $285/night and 68% occupancy, San Diego produces roughly $194 RevPAR and about $5,814/mo in gross revenue against a purchase near $895,000 — a 27.1× GRM and ~2.3% cap rate. Read those numbers together and the profile is clear: this is a demand-durability and appreciation-oriented position, not a cash-flow engine. Gross versus net honesty matters even more at this basis — management, cleaning, and furnishing costs come out of $5,814 before debt service on an $895,000 asset. Compare Big Bear, where $495,000 buys a higher $295 ADR, or Palm Springs at $325/night on a $625,000 basis: both out-yield San Diego on paper. What they can't match is twelve-month coastal demand and metro-scale liquidity. You wouldn't send a family-medicine doc to do brain surgery — and you shouldn't underwrite a premium coastal STR with a generalist agent or manager who doesn't live in this specific market's numbers.

Costs and rules to underwrite

Property tax at 0.75% runs roughly $6,700/yr on an $895,000 property — a real line at this basis. San Diego layers moderate local STR regulations, including a defined licensing regime, on top of California's strict rental rules, so verify current local short-term-rental requirements and license availability before committing.

Building your local team in San Diego

At an $895,000 basis, team quality will make or break the investment — errors are expensive here. You want professional STR management with proven revenue management in coastal submarkets, an investor-focused realtor who knows which neighborhoods hold licenses and which don't, and a lender comfortable structuring DSCR or investment loans at this price tier. Standout amenities and a memorable design identity still matter when guests compare beach listings side by side — properties that photograph like a destination historically out-earn commodity units. Dr Home Investor shortcuts the staffing problem by introducing vetted local team members — including a Realtor match with boots on the ground in San Diego — instead of leaving you to a blind Google search that wastes weeks at exactly the wrong stage.

Bottom line

San Diego is California's premier STR demand story: $285/night, 68% occupancy, roughly $5,814/mo gross, and a twelve-month coastal calendar behind it. The ~2.3% cap rate says you're buying durability and long-run coastal positioning, not spread. For physicians with the balance sheet for an $895,000 entry, it is the state's most defensible STR hold. Explore other California markets for higher-yield alternatives inland and in the mountains. Weighing vacation-rental income against your timeline to financial independence? See physician FIRE through real estate.