Does anyone have any deeper knowledge on the Truckee market? With the market shooting up there pretty quickly I am trying to understand what the average income is for a 4/3 in the truckee maybe Tahoe Donner region. Prices are around $1.2-$1.6m so not expecting a ton of cash flow at this price.
In addition curious to see if anyone has noticed any softening the vacation home market?
Originally posted by @Lana Sheta:
@Jorge Chang Tightening regulations are certainly a concern, particularly on the California side of the lake.
If you're not committed to California, Nevada is much less restrictive on permits. There are some properties on Kingsbury grade, ~10 minutes from Heavenly Village that fall within the Douglas County Tahoe Township. Getting permits is fairly straightforward, and there's no moratorium on applications.
On the Nevada side, property prices are a bit higher, but taxes are much lower. I recently helped someone purchase a 2 bed/1bath turn-key furnished property for 315K, so strongly cash-flowing properties at decent prices are definitely out there.
I imagine that once Measure T goes into full effect and the supply of STRs gets hugely constricted, nightly rental rates for Nevada properties are going to see serious increases.
Douglas County has also instituted a cap on rental permits and the hit that number as soon as they lifted the moratorium and filled the last 50 or so permits.
@Carl N. Given the city's recent action to pause issuance of new STR permits for further consideration and the recently declared "housing emergency" it's a pretty risky time to buy into Tahoe Donner/Truckee.
That's not to mention that those low $1M houses were selling for $500k 18 months ago. Or that there are still lots of unrented airbnbs for peak weeks/months still for this winter, which points to a bit of an over-supply even in an extremely high demand compared to normal market. Unless you are in love with Truckee/Tahoe Donner specifically you can likely find better markets.
I say this as a TD homeowner.