Thoughts on if the Lake Tahoe Vacation Rental Business holds up.

[Jeffrey Andrus]

As for now the numbers look pretty good. Gross Rents from using Airbnb and other sites are estimated around 50k a year. Even with  pretty high management fees the properties look like they will Cash flow pretty well. My thoughts are that as it stands now that most of the Renters coming in are a Pretty affluent group who may not be that affected by a slow down in the economy and thus would keep coming regardless. Biggest factors for the properties income comes down to how much it snows is in the winter. More snow = Better. 

Pros of buying now :

 If Inflation does go through the Moon then perhaps this is a Great time to Leverage up on properties at stupid low rates that will cash flow well. In a way Vacation rental can be safer as you are not relying on one person/family to cover the costs so you are spreading that risk out to a bigger bucket of people if a general recession were to happen.

Cons. If the overall RE market drops in value due to all the homes in forbearance and people who own vacation homes for Only personal use flood the market as the first property most people sell in a hard times is a Vacation property if they have one. Which would leave me in the hole pretty quickly. 

Which would be fine although certainly not Ideal. But if the property still cash-flowed and I can make my payments we will be fine.

Will Inflation be a bigger factor? Or deflation? and will any of that effect Vacation Rental prices!!??

My Glass ball is looking kinda cloudy so any thoughts would be welcome from people with more experience in the Vacation Rental biz.

 Perhaps that just means I keep playing it safe and stay more in cash for now. Then again if inflation heats up holding cash is Not what I should be doing.... 

I know lots of threads similar to this, but did not see much with the Vacation/Rental slant.