Lake Tahoe for Investing?

[Gary F.]

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?

[Blake F.]

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.