Any Tahoe owners here?

Question

I've come across a decent opportunity on a place in Lake Tahoe.  It's not a market I would typically look in but I have a partner I trust that lives in the Bay area that wants to own in Tahoe and has approached me on a partnership with favorable terms.

While the terms of the deal make the tolerances on what I would typically look for a little looser, I still want to make sure it's a smart decision that will cashflow well.

I am having a hard time getting good numbers on what to project for annual revenue there.  Looking at AirBnB/VRBO calendars has been tough since the place is so seasonal and we are just entering the shoulder season.  AirDNA/Rabbu are all over the place between $100k - $180k which is a huge spread.

So I am reaching out to see if there are any BP members that actually own there and can provide some gross revenue numbers along with size/home type, or people that have found those numbers from others before.  Feel free to DM if that's easier but open discussion is always welcome too.

Lindsay Buchanan · Answer

Hi Ryan Moyer, short term rentals around the lake have drastically changed in the last 6 months. El Dorado County has a cap and a current wait list. Placer County is not issuing any new permits until April of 2022, but you able to transfer is the existing home has an active permit. Douglas County also has a cap and a wait list. Washoe County is still allowing new permits, but some HOAs have banned them and do not allow them. And then lastly, Truckee actually just issued a 45 day moratorium not to issue anything new. I know the market very well as I actually sell real estate in the area. Let me know if you want to jump on a call to discuss further. I would be more than happy to talk to you about what you can expect based on location and desirability of the home.

Ryan Moyer · Answer

https://www.cityofslt.us/Docum...

The neighborhoods in red are legal for STR.

Matt Fine · Answer

I live in the Tahoe basin and can attest to the STR restrictions.  Note that STRs restrictions are for "short term" rentals.  If you can get a place that can rent for 30 days at a time, you're good.  We have remodeled many condos in desirable areas that have decades of families that rent the same place for a month at a time every year.  It's a segment of the rentals that are not often talked about.  Or, do a ski lease for 4-6 months over the winter and monthly rentals in the summer.  Shoulder season can be for your personal use- it's the best time of year anyways.

Charles Wang · Answer

Did you ever end up investing? Would love to hear your experience if you did! I'm looking at a $1.2M 3/2 investment in Placer County near Kings beach right now.

Scott Schuhwerk · Answer

Hi Ryan, I have a house in Truckee that I purchased in November and starting renting out as a STR in April of last year and the revenue blew away my expectations, I would be happy to chat with you to answer any questions you have.

What area is the subject property?  As Melissa mentioned there are some restrictions right now on new STR permits in North Lake (Placer County 5k feet elevation and higher), in South Lake and as of last week Truckee as well.

Jake Andronico · Answer

@Charles Wang

My family has an STR in Incline they've been running for many years. Curious to hear your analysis near Kings Beach.

Dustin Allen · Answer

@Greg Eftax

That is correct, Greg.  Currently El Dorado County has a waitlist of over 95 people waiting for a Vacation Home Rental permit.  There is also a 500 foot buffer zone rule so many properties will also have to wait until any active permits within 500 feet lose their permits before the subject property will be eligible to receive a permit.  You can use the VHR map on the county website to see how many active permits and waitlist properties are near any properties that you might be considering.

https://see-eldorado.edcgov.us...

You can also rent for 31 days at a time in El Dorado County which would not be considered a VHR.  31 days or more is considered a long term rental.

Greg Eftax · Answer

This was very helpful! If I may, can I ask a clarifying question as my wife and I spend our summers in SLT and want to buy a STR to rent when we’re not there.

So if a house falls outside the city limits in Meyers (outside tourist zone and residential based on GIS measure T map) but still in el dorado county, I wouldn’t automatically be able to vacation rental it? I’d have to be put in the wait list? Same scenario for something on the NV side in Stateline like a condo in Douglas county?

Ryan Moyer · Answer

The red is where it is allowed.  The yellow is where it is not.

Here is another map that breaks it down further. https://cslt.maps.arcgis.com/a...

Not allowed in residential zoned areas.

Any Tahoe owners here?

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