We know the housing market has been hit. We’ve seen rate hikes, recession fears and high prices finally slow things down. But, the lake market has specific nuances and so far prime waterfront prices are still hanging in there. So will we get an opportunity to buy on the lake at lower prices?
We think YES. The best opportunities are going to come from sellers who bought with the promise of huge VRBO cash flows.
Here’s what we are seeing:
• Investors that hopped on the STR bandwagon when interest rates were low are now finding it’s not as easy as they thought
• Inflation has increased cost of services to manage and maintain rentals
• More owners are deciding to rent and that competition is making it harder to stay occupied
• Short term rentals gone bad represent a higher percentage of new lake listings
If you need the property to cash flow to make the investment work, you must scrutinize the P&L, historical occupancy rate, and get ready to put in some sweat equity.