Lake Tahoe for Investing?

Question

I've been talking with a couple of RE agents about possibly purchasing in South Lake Tahoe.  The prices are around $350 for a 3-4 bed/2baths SFR. These homes are within 4 miles of the main strip and casinos.  There's also Heavenly Ski resort. Rents are about $2k

I can go either with vacation rentals or long-term tenants.  Being more of a resort community, there's really no bad areas to purchase, value being based more on distance from ski lifts and shopping. Rents of course are higher closer to those areas for convenience and the work force.

Anyone with experience in Tahoe?

Account Closed · Answer

I agree with everything Steven said.  I have owned a house in Tahoe (west shore) for 6 years.  It makes about $40k/year in vacation rental income, but with management and all expenses I barely net $5k/year.  It is worth it for me because I can use it in the off season, and it essentially pays for itself.

i wouldn't look at a $350k house in South Lake to make much money, unless you manage it yourself and aggressively market it as a vacation rental.  But the last 5 winters have been terrible, so the ski rental income is drying up quickly.  If you're going to use it yourself it might be worth it.  There are some older houses down there in that price range that are prime for rehabbing, but it would be a rehab and hold situation - you wouldn't net a significant enough amount in a flip to make it worth doing.

Account Closed · Answer

I lived and worked in Lake Tahoe from 2000-2006 and owned and sold a home in Zephyr Cove NV Tahoe is a very small community as you know.the homes that you describe are probably the older smaller homes,cabins etc that might rent from $50-150 a night on Airbnb if you wanted to go the route . Homes go form your price range to  way up over 5 million .If you are buying for investment and income and have no desire to enjoy the incredible area I would advise you to look elsewhere Tahoe has been in a snow drought for about 5 years and the off seasons not summer or winter do not bring much income .The price range that you are looking would be better suited to a year round rental but you would be hard pressed to get much over $1500 per month .

Nick Hedberg · Answer

Bringing up an old topic . . Any thoughts on how maintenance expenses vary in Tahoe compared to other areas? Snow removal, etc.

Ruslan Khamitov · Answer

Well the 2016 ski season was one of the best in last 10 years :).  What about vacation rentals in summer?  I hear that people are going to Tahoe in summer just as much for other activities such as hiking, fishing, boating, off-roading etc.  But I agree waiting for next crisis is the key.

Jake Andronico · Answer

@Gary F.

Curious if you ever pulled the trigger. 8 years ago would have been a nice time to buy up here :)

But, a lot of buyers are now on the sidelines and we're seeing some of the best deals we've seen in the surrounding areas.

Jonathan Moomey · Answer

I am following as well. I live approx. two hours away and would use as personal for pleasure trips as well. Not to mention, close enough that I could do simple clean up/management myself. Hoping for more input on this topic.

Shane Vince · Answer

Following.... Looking at a Condo unit in a full service community. Rents look like $100/ night. Seems strong enough as long as there is the demand. Anyone have an update on vacation rental demand lately?

Ash Hussain · Answer

@Ruslan Khamitov "But I agree waiting for next crisis is the key." What about @Gary F.'s point -- "Waiting for the next "crash" could be years and seems impossible to predict when and if it will happen."

Are you investing out of CA until there is a crash or at least a correction here?

Lake Tahoe for Investing?

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