LTR in Tahoe

[Alex M.]

Hi All,

Long time listenter, first time poster! I have been saving money for a long time and looking to finally make the jump and purchase an investment property.

Im focused on building wealth in my property, renovating it, and keeping it for the long term. I understand cashflow and making money will come in 7-10 years.

my situation:
I live in the Bay Area but housing is out of my price range. I travel to tahoe on a regular basis and have been looking to buy a property in South Lake Tahoe. I am looking to buy a 3 bedroom I can turn into 2 units or 2 bedroom I can add an ADU onto. I have about 30-45% I can put down. Ideally, one unit I can rent out long term and one unit for short term (3-6 months seasonally) that I might use every once in a while / on the off season. (I do not want to do AirBnb) So I'm okay with even paying a few hundred a month if its acting as a second home, something like house hacking light. As as long as the tentant covers mortgage, I'd pretty much be happy. Hopefully, with a big enough down payment the mortgate will be low enough for tenants to cover. Ultimately Im looking to build equity in the home to eventually leverage and purchase another property or sell and trade up (1031).

I've heard renting 3 bedrooms is a very crowded market so thats why im looking to do the smaller 1-2 bedroom options

Im concerned about all the competitions and the somewhat transient nature of the city. Seems like most rentals would be one year before someone leaves rather than the multiyear tenants that I would prefer. Or unreliable tenants that leave before their lease is up.

My big question here is - how is LTR in tahoe?

Thanks!

[Kyle McSparron]

Hi Alex, I live in SLT and have been here since 2010. I see 3 main LTR demographics of the area. The ski bums types (I use this affectionally as this was me) They are fairly transient and stay for a shorter time frame. The normal local who do whatever it takes to live here and most that I know do not move frequently once they lock down an affordable LTR with a good landlord (until they hopefully buy their own place) and third type are those who have recently relocated. Most buy homes or look to soon after they get here so they are probably not your target renter. SLT is hard (but possible) to build in they are allowing ADUs if you can jump through the red tape of permitting. I hope this helps!