All Forum Posts by: Matt Fine

Hi Elisse,

I'm probably not the contractor for you.  We specialize in remodels in the North Lake Tahoe area and rarely take on projects in Truckee.  But to touch on some of your points:

-Costs to build are probably some of the highest in the nation, other than maybe Telluride or other vacation destinations.  The main reason is labor, and the cost to live around this area is not cheap, so skilled labor demands high wages and benefits.  (The current labor rate for my apprentice carpenter with 1 yr experience is $117/hr.  Plumbers, electricians and other trades can easily charge well over $180/hr).

-I don't work in Martis, but I have subcontractors who do.  Some of those houses are poorly built, though they initially look great.  Many Martis buyers are interested in form over function and the builds can reflect that, with more $ spent on adding square footage and finishes than the details that aren't seen (insulation, ventilation, water management, etc).  As such, there's a wide range of quality in Martis and probably a range in $/sf.  

-$600/sf houses (or even $400/sf) are definitely not out of the equation.  But there are tradeoffs.  Complicated rooflines, modern details that require a bunch of steel framing, excessively large great rooms, spa-like bathrooms, etc would push you into the $1,000-2,000 range.  

Your best option for a builder is probably not the large builders in the area.  The small companies may be better at working within your budget.  Some of the small companies may also have better architects who have more favorable rate structures.  The high initial ballpark ranges might also be a way to buffer against future increases in labor and material costs.  

Hope this helps a bit.  Have you considered areas outside of Martis? Another option is to find a nice existing home and do a remodel to make it "yours".  Existing homes may not have fire sprinklers (another current cost of new homes that could be avoided).

Good Luck

Hey Adam- If your builder has done new builds that were financed, he should have insight regarding who was lending on those projects.  About 7 years ago we used Banner Bank.  They weren't easy to work with when we had delays due to a wild winter that pushed the schedule back by 3 months.  But they were the best option for us at the time.  

Follow up question- you mentioned building a modular SF home.  Who is the modular company you're planning on using?

Thanks and good luck

True- Ski leases from Dec through April are typical.  The shoulder season is always quiet, but you could likely get 30+ day rentals in the summer.  Where is your house?  Close to any lakes or trails? Monthly rentals in the summer are not uncommon, especially if you have a nice amenity (proximity to Donner or Tahoe, proximity to downtown, or one of the local golf courses).

Check out Tahoe Forest Hospital for their need of MTRs.  

Many of the ski resorts and summer road contractors will rent MTRs for their employees.  They'll cram as many butts in beds as possibly, but if there are maintenance issues, their maintenance crews often fix them (just include that in the lease).  
  

HI Kevin,

Truckee is a great place to own a property. The local STR restrictions are worthwhile. Yeah, it sucks to be on the outside currently, but wait it out and in 5 years you'll be happy you did. Luckily, Truckee has a huge need for long term rentals. You can even get grant funds from the town to provide long term rentals. Look into it.  It's not a bad way to wait out the year.  

Thanks Jeff- I forgot about Truckee's new waiting period for STRs.  

Placer County is the most STR friendly with a few hundred STR permits still available if you are looking to do an STR

Hey Ben,

Here are a few sites to look at:

ADU info for placer county properties - offing a way to save on design of new ADUs:

https://www.placer.ca.gov/7571/Building-Accessory-Homes-in-

Here's the info regarding the "Lease to Locals" program offered through the Town of Truckee where they'll pay you up to $18,000 to offer long-term rentals to create more "workforce housing":

https://placemate.com/truckee/

I think South Lake Tahoe might have some incentives as well, but we are focused on the North Lake and Truckee areas.

Good Luck

Hi Ben,

As was mentioned before, the STR scene is ever changing with the regulations. I'm in the Tahoe/Truckee area and the regulations are a bit different in every jurisdiction. One thing that's certain here is the need for "workforce housing". There are a number of properties in the area that would support a long term rental and an STR. Some areas have significant grant funds available for owners who sign 6mo + contracts with long-term renters. It might be good to look for these small multi-family properties or places with ADUs. Just make sure you have a quality agent- there are a number of uneducated agents around that aren't fully aware of the different rules in the different jurisdictions.

However, on the STR front in North Lake Tahoe- a clean and well designed property can see amazing returns. The range of quality is huge and a lot of places set the bar pretty low. It's not hard to do really well.

Good luck

Quote from @Kathleen McDowell:

Hi BP Community - I have a STR in Lake Tahoe and feel the demographic of the area indicates guests from surrounding San Fran area would filter properties and search for those with an Elec Charging.

1. Have people found this to increase appeal/bookings in their STR?

2. What are the cost considerations from the system to installation to usage bill? Anyone have experience?

3. Would installing a EVSE with a J1772 connector on the cable provide what is needed?

4. Any particular solutions people recommend?

Thank you.

Hi  @Kathleen McDowell
I'm a remodeling contractor near Tahoe City.  In my opinion- yes, you should add a charger.  We have an STR without one, but will be installing one soon.  CA is pushing EVs and within a short timeframe, they will become the main vehicles you see on the roads.  An STR in our neighborhood has frequent renters who drive EVs.  We've noticed that many of the better, higher quality renters are driving them.  It's not too expensive, and if you're lucky with the current wiring and available space in your electrical panel, it could be a quick project for an electrician.  If your panel needs to be upgraded, this is a great time- prices will only keep going up.  
It's a nice amenity, and now you can justify a bump in the nightly rate.  
Good luck  

Uh oh. You said "Placer". I think I know right where your property is, as there are only a few hundred lots in Truckee and on the Placer co side of the line. I think your lot is on septic, right? Your first step should be to talk with the Placer County Environmental Health Dept regarding the availability of a large septic system on your lot. This might require some perc and mantle tests. The county will see that you are potentially going to pump 3x the amount of sewage into the soil. Other properties in that area have been denied when asking to add an ADU because of the septic.

Call the Environmental Health Department in Auburn.  I think the main septic contact there is Mohan Ganapathy (sp?)

Good Luck.  

Also- Placer County has been the main slow-pokes around here with permit review and turn around time.

So sorry - I feel like I just rained on your parade.  But it's better to know the roadblocks early.

Hi Mary,

I'm a contractor in the Tahoe/Truckee area and I built our personal home about 4 years ago.  At the time, the construction loan process was a bit of a pain.  We used a broker who was able to hook us up with Banner Bank.  They financed our build using a 9mo interest only loan of 5%.  We choose 9 months, but they also offered 6 or 12 month options too.  Banner Bank wasn't great to work with, but they really were our only option.  We found that many construction lenders did not want to loan to us if my company was the one doing the build.  As much as I told them about the benefits and cost savings of self-performing the build, they didn't care.  They all wanted a 3rd party contractor hired for the build.  Except Banner.  They were fairly new to construction loans at the time, so they may have changed their policies too.  

I have no idea what you should do with the personal financial side of your question.  That's not my lane.  

But with the build - starting next spring sounds reasonable but you should be talking with architects and engineers now, as most of the local companies are booked up and the planning and building departments are backlogged.  I have clients with deck plans that have been in the building department for 10 months now.  So my advise is to get plans and permits ASAP and pay for that out of pocket.  Then once you have a better understanding of when the permit may be issued, sign on to a construction loan.