Anyone Recommend Vacation Rentals?

Question

Hello!!

I am interested in possibly purchasing a house in South Lake Tahoe, CA for a Vacation Rental and for my family and I to use as well.  Anyone have any success stories re Vaction Rentals? And any pitfalls to avoid?  I hear more about SFR so I'm wonderfing if Vacation Rentals are not a good investment. Any insight would be appreciated as I'm a newbie investor!  Also do you recommend using a Property Management company to manage the property?

Keep up the good work everyone!!

Kevin Miller · Answer

@Cheryll Ramirez

I think that is because all the domestic travellers want to stay in houses not hotels.

Dustin Allen · Answer

@Patricia Velez

South Lake Tahoe is a great place for a vacation rental. As @Bill Cereske mentioned, there are certain areas that are off limits to new vacation rentals. You either need to buy in the area that is zoned “Tourist Core” or just outside the city limits in the area we call the “County”. Properties in these areas are seeing a lot of competition and the prices reflect the ability to vacation rent them.  There are still some good ones out there if you look hard enough.

Self management will almost always be the best bet if you’re willing to put the time in to maximize your rates and occupancy.

Cheryll Ramirez · Answer

I really thought with all the Covid and travel restrictions this industry would have been hit hard with vacancies.  However, all the investors I personally know doing VHRs say their properties are fully rented.

Avery Carl · Answer

@Patricia Velez listen to BP episode #364 ;)

Brian G. · Answer

@Patricia Velez make sure wherever you invest has favorable regulations for VRs. I would post again with Lake Tahoe in the subject line which should draw out some local input. Yes, VRs can be a great investment though I recommend you learn how to self manage remotely if you have some flexibility to maximize your profit. It’s an active business. If you don’t self manage then the property manager will make most of the money as the going rate is 20% of gross revenue for pm. There are lots of investors on BP who self manage and who are willing to help others, myself included.

Patricia Velez · Answer

@Dustin Allen

@Cheryll Ramirez @Avery Carl

@Bill CereskeThank you so much for your input! I appreciate it.

Patricia Velez · Answer

@Brian Gerlach thank you so much!! I appreciate your insight!

Patricia Velez · Answer

Thank you kindly @Jerry W.

I appreciate your reply!

Jerry W. · Answer

@Patricia Velez it is almost impossible to answer your question with accuracy.  Where you buy, what you buy, how much you pay for it, and many other factors make a difference.  I think VRs are going to surge for a few years, but nothing is certain.  There are a ton of threads about VRs on here.  try reading a bunch of those for a broader view.  Maybe set a key word alert for vacation rental.

Anyone Recommend Vacation Rentals?

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