Clearlake Area Multifamily

[Ryan Heywood]

I'm curious about prospects in the Clearlake area, it is the most affordable and accessible area to me. I really can't touch Napa prices. I'd love to find something in Middletown and I've heard that Lakeport is a good option. Can anyone recommend an investor savvy realtor in the area? General thoughts are also appreciated!

[Jay Hinrichs]

Originally posted by @Merv Screeton:

Go check the area before investing. A lot of the business there like Konocti Resort has shut down. Hwy 20 has so many meth addicts walking along it that you will think you are in a zombie movie. I'm not saying don't invest there but you better be aware of the current situation so you make an educated decision. I drive through there from the Sacramento area to dive in Mendocino. The countryside is beautiful and I would consider living there myself in retirement except for the unemployment and drug problems. If it's made of copper or aluminum kiss it goodbye. 

Anytime you see grown men cruising around on BMX bikes that are too small for them you are in a meth area.

 Merv  Konocti Harbor in has open closed open closed for the 50 some years our family has been involved with Lake county.. and actually a colleague of mine right now is trying to buy it and get it repositioned.  Will have to check in on him and see if he made any head way.  there is no question lake county has always been a place that had great potential but never could quite get there.

And there is reasons for that.

right after the gold rush Clearlake area was quite popular as resorts.. mineral bath resorts abounded all around the area.. reason proximity to SF populations..

Once CA started to dam up all the rivers coming out of The Sierras and hwy 80 was made into a freeway to Tahoe.. those resort dollars started to filter to a bunch of different areas and markets..

There used to even be a TWA flight into a little strip on the North East side of Mt. Hannah.. this flew people into the Hobergs resorts in DC 3s in the 30s and 40s

So then when they lost the tourist trade and really no industry.. it became a place were more modest second homes were being bought and used.. and it was very much a SF based area.. and had some pretty big SF Italian communities.

in the 1920's over 60,000 lots were platted from NICE to Clear lake Oaks and the city of Clearlake Including 7k lots behind Lucerne which virtually none of them were ever built on .. a Guy Named George Triphon bought most of those lots in the early 60s  surveyed them all pushed roads through but never followed through with water or sewer leaving them unbuildable and a environmental mess. you can see that as you drive hwy 20 up behind the city of Lucerne.. those lots were left to rot and then become the fodder of the guys who buy worthless tax sale lots and resell them on line.. we know all about the land geek and those dudes.

Another big company developed Konocti Riveria's  they at least put in paved roads and water but not enough water capacity to build out and all the lots need septic and many don't perc... so that was an issue.

then you have Boise Cascade comes in and builds Hidden Valley lake following their theme of big development private lake golf course etc.. think Lake Wildwood  etc Boise built 27 of those up and down the Seirra water sheds.. Same issue though create all the lots but water system only designed to handle the first 500 homes and there was over 4,000 lots and a bunch of the lots did not perc..

all of these issue have led to sporadic growth.. then the city of Clearlake had dirt road level ground and no restrictions on mobile homes so you had people moving in single wides as vacation homes which become full on rural ghetto situations.. 

 So there have been many many developers and people come in after the guys made the big money in the 50 60s and early 70s then have to use modern development standards and just could not make it work..