Investing in Lake Tahoe real estate is a great way to build your portfolio and increase your monthly cash flow. There are a couple different ways to invest in Lake Tahoe real estate, both of which come with some pros and cons. Here are some more details to determine which option is the best for you.
Fix & Flip
Watching people flip Lake Tahoe real estate has become a reality television favorite. Not only do you get to watch the entire design process and see the creative elements come together, but you also get to see just how lucrative investing in real estate can be. So long as it is done right of course. Not only can you stand to gain some sizable profits, but in some situations, it is cheap and fast and you aren’t dealing with tenants, landlords or rental laws. You simply buy Lake Tahoe real estate that needs some TLC, make the necessary repairs, relist and sell. There can be some downsides though. Home repairs can be expensive. While you can cut costs by doing some of the work yourself, part of that added value is ensuring new buyers that the recent rehab was done by industry pros who provide quality work. There can also be unforeseen complications like zoning or permit issues. Time is money, so work with your Lake Tahoe Realtor to make sure you are buying a property that has been fully inspected and won’t end up costing you way over budget to update.
Buy & Rent
With rents rising quickly, this is a great option to produce extra income. In Lake Tahoe real estate, there are a few different rental options since we are a second home/resort market. You can buy and rent long term until you want to use the property to retire in or resale. If you like coming to the lake for one season, you can do a seasonal lease to rent the rest of the year. You can also use your home as a vacation rental. In South Lake Tahoe there is a Vacation Home Rental ordinance that has regulations so your Lake Tahoe Realtor can advise you on this one as there are zoning areas, permits, inspections and more. When you use the Buy & Hold approach, you create long term wealth potential and a steady monthly income stream. However, if you don’t hire a reputable management company you could get stuck dealing with acting as landlord, handling all the paperwork and maintenance hassles.
For more information on investing in Lake Tahoe real estate, feel free to reach out. I would be happy to talk about the various options.