Buying a rental Property in the Lake Tahoe area is great if you want to get a foothold in the area.  If you plan on moving to Lake Tahoe in the future, why not buy now and let your Lake Tahoe home pay itself off in the meantime?  In Lake Tahoe real estate, a reasonably priced Lake Tahoe property has a capitalization rate (the ratio between the net operating income produced by an asset and its market value) of between 7 and 8%.  With a 7 or 8% capitalization rate, the owner can pay for the entire property in between 15 and 30 years using just the return on that property, assuming he has paid a 20% down payment at the beginning.  Many property owners prefer the security of long-term tenants; however, short-term rentals such as ski leases, are popular in the area and can be a good source of profit (www.tahoenorthrentals.com).  Many vacationers come to the area for vacation and seek to rent a Lake Tahoe home for just a few nights.  Short-term rental rates range from high to low,  an entry level property rents for about $150 per night, beyond that, the sky is the limit.  Here are some of examples:

375 Northridge Drive:  This single family home is located in the Ridgewood Highlands neighborhood in Carnelian Bay, CA.  As of now, it is being used as a vacation rental and is  for sale at $399,999.  It is a 3 bedroom, 2.5 bath.  It is set up as a vacation rental to sleep 12, but could easily be converted to a traditional style single family home.  This location is great for a vacation rental because it is halfway between Northstar and Squaw Valley, about ten minutes drive to each.

8636 Rainbow Avenue: This duplex is located in Kings Beach, CA, just minutes from skiing at Northstar.  It includes two, 1 bedroom 1 bath apartments, one on each side.  Both of these units are currently being rented with a monthly rent $825 each (tenants pay utilities).  The asking price is $278,900.  This property is priced to sell.