LOTO rentals
 

I was thinking of purchasing a place in ROTO butr it feels like after Covid the place is over saturated with BRBO`s?
If I was looking to break even is this still possible or did I miss the boat (pun intended) ?
The places Im looking at were half the price 3 years ago :rolleyes:
I know Biden will kill this economy more and more and if there is a crash and I payed double ...thats not good .. but that may never come.

Roto? Brbo ?

For what it’s worth our stupid 1200 sq ft piece of crap condo in Naples appraised for almost double of what it did in January 2021 and you can’t find anything out of our development in town for 150% of our current value.

I don’t see values going down in highly sought after places as they are usually owned by the better half of wealth , I mean not DemoRats .

My sister in law put her piece of Krap 50 yo house on the market on Saturday in a podunk town outside GR Michigan . She had 13 offers over asking by the end of the day and just accepted one almost 25% over asking.

I have been looking at lakefront homes the last year. I think we both missed the boat lol. Prices up 50-100% the last 3 years.

Hopefully there will be a down turn before I'm ready to retire.

I bought a condo in march 2020 and sold it two years later for just about double, took that money and bought a house in January 2022 thinking I bought at the peak of the market. But didn't care since I made good money on the condo. Fast forward to today and the house value is up around 40% since we bought it. LOTO is a weird market to say the least, I'd like to think that prices have to come down eventually but it certainly doesn't seem like it's going to be anytime soon.
There is a ton of airbnb's but everyone I know with one is doing pretty well renting them out.

Sold our condo years ago when my career called for a move and broke even. Today it's worth over double what I sold it for.
I've been looking at the LOTO market for over a year to buy a lake house. Last year, there practically wasn't anything for sale. This year homes have been listed like crazy and the one's that have been listed awhile have had huge price drops.
My advice is to wait it out. Lake homes there are weekend places and as the market turns, people will try to sell them fast to lose the least amount of value which is what I'm seeing just based on asking prices.

That is an not true.... First, we still have very low inventory. So homes yes, are slower than 2 years ago, but most are still selling under 2 weeks. If they are not selling, there is a reason, most likely the property has issues ie: HOA in condo's or house passing inspection. (Or of course it is WAY over priced for the comps.)

When it comes to prices , there was HUGE markups on houses, like stated 2-3 times what they were a few years ago, so there has been some market adjustments, but they are not losing any money, just making less.

We are still without a doubt one of the least expensive places in the country for waterfront real-estate. The other thing you must look at is the taxes. LOTO is cheap!

The biggest competition for banks and mortgage companies is still the cash buyer... People are selling their homes in other cities and states and moving here full time. I will agree we are not the same seasonal place it used to be, it is now busy March to November. But for those of us living there that means more choices for restaurants, businesses etc coming in the future. Look at what is going on right now, MAJOR expansion in the Camden County area, this will lead to more growth in OSB. Yet.... If you still want quiet, go to the upper numbers, you will still hear the Banjo's playing and real-estate is 1/10th the cost of the 0-35mm

Back in 2008-2015 we had VERY few sales and when everyone else was crashing, we just sat stagnant. Nothing really dropped in value, but nothing sold either. because so many places at that time were 2nd and 3rd homes, they rode out the storm.

You can wait, this during the down turn did as well and guess what, most ended up paying more anyway, so if you want it and can afford it, find what you like and get it, or start the building process to get exactly what you want. It isn't going to get cheaper... IMHO...

There's nothing cheap about LOTO just like the rest of the country over priced.........bidding wars and stupid people paying 20, 40 50K over asking will be buried ...........remember the Alamo and 2008

Quoted for future reference Brian :D

Bingo and the entire LOTO economy is based on service industry.
Due to years of record low interest rates and inflated prices, there's gonna be a lot of homes in negative equity soon. Like I've been telling my friends... you can always refinance at a lower interest rate but you can't renegotiate the purchase price.

Property taxes are cheap, but if you live there full time and don't play the tax game (boats registered out of MT comes to mind) the personal property tax on your expensive cars/trucks/boats/etc. adds up. Have to take your total tax burden into consideration. The upper MM's are not as quiet and the value they used to be.

Let me sum it up for you in my relative terms.

Our Ft Lauderdale area house is worth about $2mm as of today. The house we will be finishing up at the Lake(19mm) next year will be nearly the same value. HOMSTEADED property taxes are about $30k in Ft Lauderdale and will only be about $2800 at LOTO on a vacation home.

I could list a bunch of reasons the Lake isn't headed for anything like 2008, but there will always be naysayers and cheerleaders. Just buy what you like and can afford, if you aren't trying to flip it, or sell anytime soon, no downturn will matter, even in the longshot it happens.

Let me sum it up for you, You act like no one else gets an opinion, seems the biggest cheerleaders in this thread are ones trying to move land, all this posturing Hey look at me, I could give two ****s,

I must be one of the few that doesn't see the attraction with LOTO, been there a handful of times, just another body of water with bars,

you have not made it unless you're in the look at me club, LOL

I would wait a good 6 months before deciding to see how stuff shakes out. You need to run the numbers. My current guess is the only way you are going to break even with rental income vs expenses is if you are putting at least 50% cash down. I think there will be pull back, but I don't believe it will be too extreme.
I bought my condo pre covid at less than half of it's current value and if I was renting it, I'd still need to rent it about 70 nights a year to break even if I was using a management company.

I'd say that the 2 people who responded and you are referring to who actually own and develop property at LOTO have a lot more knowledge about the LOTO real estate market than a guy who visits the lake once or twice a year for a long weekend.

For me, it was my first lake vacation as a teenager in '77. Once I was able to afford a boat as an adult in '98, the memories of boating on that lake drew me back. Spent the next 25 years going to the lake multiple times a year with the last 4.5 years having my boat there full time. The lake has changed dramatically over that timespan and I can see if you like a quieter, sleepier lake LOTO would not be for you. In a lot of ways it is no longer a lake for me due to the post-COVID influx of people and even before COVID, the growth of the average size of boats there and the increase of how rough the water is on weekends. But if you like performance boating and live in the Midwest, there still is no better place to go and take in all the action. My son, who first got drug along with us to the lake as a 6-year old, now at 30 still goes back to the lake at least a couple times a year. As a kid you never could have told he liked it. Seemed to just tolerate it. Then as an adult he couldn't wait to get back down there. Told us many of his favorite childhood memories were of the lake. Blew my mind as he isn't much into boating at all!

As for rental property, I agree with Griff above. A friend just dropped over $500K on a new unit (in the yet to be completed building facing towards Dog Days) at Topsider. Thinks he can swing it by renting it out. NFW. The math doesn't work. I'd sit back and wait and see how inventory does over the next several months.

I read your edited post, so I'll just point or that I only made one comment, about MY reasons for believing in the lake. And I didn't mention my development at all. Only my build as an example of logic.

And I also told the OP to buy what he likes or can afford, and that all downturns(if) right themselves. For example, how does the price point look now compared to Pre-2008? :cool:

Lake Expo article that just came out today relative to the discussion
https://www.lakeexpo.com/real_estate...5270e631d.html

Lake of the Ozarks It's booming but rates are going up hope it stays booming there & nation wide:confused:

I may not boat on the lake much but that has nothing to do with the amount of times Ive gone to look at properties and was ready to buy when things went crazy, so the tracker you planted on my truck must be broken....:D

I feel all lake front property is going to keep going up regardless of the Times. With all of the devastation along the coasts due to fires, hurricanes and other natural disasters AND rising insurance costs and property taxes- Here in OK on GLOC- prices have been going up pretty drastically also. Not like LOTO but we are not as big nor near as developed. Most places in the Midwest are a bargain comparatively speaking.

My place is exactly 1 hour to my business in Tulsa, so the commute is fairly easy the 1 or 2 days a week. My Pops commuted into DC from Fredericksburg for 30 years. We are here most every weekend.

and you can't beat waking up to this.
https://cimg9.ibsrv.net/gimg/www.off...5b1175b654.jpg


Ok maybe not the Snow so much but thanks to Global Warming that has been pretty rare. :evilb:

Agree that prices aren't gonna tank on developed inland lakes. Current prices are the new norm. Might cool off a bit but they are never gonna reset to pre-2020 prices. Unfortunately, took wife and I out of the game as we look to retire. What our $500 - $550K limit would have bought us pre-COVID at LOTO we can't touch now for $800K +. Oh well. Had a good 25 year run down there renting/staying at friend's homes.

I appreciate the feedback , really . thank you .
I may be heading down to look at a couple places I found this weekend.

RE Appraiser here FWIW, LOTO is not going back $ wise. The economic demographics of the lake have forever changed like it or not. This lake has been discovered by other surrounding states. At the Cig Rendezous in 2020 I had numerous peeps from Great Lakes states, NJ and even Cali where first timers to the lake b/c the authoritarian Govenors shut down boat ramps and/or other things like our longer boating seasons compared to other northern states. LOTO didn't lock down and when that smuck put Backwater Jacks on instagram with maskless people surrounding a pool back in the days of Wuflu a good # of peeps saw freedom and they came.. Now with significant inflation in housing prices LOTO is a bargin in comparison.
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Here's one for you ICD
25 Springridge Ln, Sunrise Beach, MO 65079 | MLS #3557629 | Zillow

If I only won the lottery.

There are quite a few older houses available for significantly less. Older folks moving off the water and into fewer steps etc. But, they need updated. I was in one last week, a friend (builder) bought. Went in, 3 days later, he had all the cabinets, appliances and fixtures out and sold, moved a couple walls, Electrician came in and wired up the new areas, in one day, sheet rock up and painted. Deck came off last week, new deck going on next week. 4 weeks in now, new floors going in after deck, yard work etc. He will spend about 50-60k on the rehab and it will be on the market for 100k profit. Yes it will be more than the 500-550k budget, but is you are willing to put in some sweat equity, it can be had. It is a good place to live, especially when the vacationer's and weekender's have gone home. My weekends start on Monday. And Fall is pretty hard to beat on LOTO.

I agree, fall is hard to beat at the lake. I spent a lot of time down there in Sept/Oct/Nov. We even do Thanksgiving down there and will be there again this year. Completely different lake thru the week and off season.

Having just gone thru what was to be a 12 week, just under 6-figure remodel of the first floor of my Cape Cod that turned into a 7 month, 6-figure plus, contractor walked off the job without completing, sub-contractors coming after me cause they haven't been paid cluster F I am in no way wanting a project. Your builder friend obviously has a good crew and relationships with his subs to get that much done that quickly in the Slowzarks.

He does most of everything himself w/girlfriend. He does use a guy with his 2 sons for framing, roofs and decks. Couple of different electricians, whatever one is available. He keeps telling me he is going to retire. We will see.

Well if everything else goes thru I guess I`ll hve a place in the Ozarks.
Signed a contract on this place yesterday . It has new everything.
50' slip !

https://www.zillow.com/homedetails/2...7861480_zpid/?

What do you do there ? Everything is closed or closes early, even this weekend Dog Days was a ghost town.

ICDEDPPL - Welcome to the neighborhood. I am just down HH on Eagle. Plenty of places open all year close by. Lil Rizzo's, HS Bend Bar and Grill, The Office, Tavern on the Bend, Toad every place on the strip.

Before selling my boat I still boated. I've boated every month of the year down there. You'll get sunny days in the 60's/70's with little to no wind that are awesome boating days. You'll get a bit of chill off the colder water but still doable.

I also transition away from most of the on-water spots and hit more locals spots and the strip.

LOTO on average is about 10 degrees warmer on any given day in the winter than it is in Central IL. They also miss a lot of those clippers that come down from Canada. They are just far enough West that most of them that get us miss them.

This was February 2nd a few years back on the strip at Lucy's. I think the high that day tickled 70. Perfectly comfortable outside in what I had on. Much crappier weather back home.

https://cimg2.ibsrv.net/gimg/www.off...3af2583048.jpg

Edit, got link to work. Congrats! Know right where you are. Great view!

Redhead and Toad are great places to boat to all year round on those random 65+ degree days we get. I think hillbilly yacht club is open all year round also but could be wrong?

This was in December of '18. I was at the lake looking at used lifts (ended up buying new). Eating lunch at Readhead and this Cobalt rolls in with about 10 or more peeps on it for a bachelor party. About 34 degrees when they rolled up!

https://cimg9.ibsrv.net/gimg/www.off...14873b5bda.jpg

That's me in the blue hoodie :lolhit:, wasn't a bachelor party but if I remember correctly my buddy had just picked that boat up that day. Had the new Volvo motors that you winterized with a plunger in a couple minutes. Fun day!

I remember a lot of peeps getting off the boat. Or maybe I'm confusing it with another group that rolled in and couldn't remember if it was gals or guys but they were there at the lake to party. Too funny that is you!

This weekend was cold , not many people out and some places weren`t open ... I still had fun thou . Don`t mind boating in the cold.
Dog Days , we were the only people there and it`s only beginning of October, temps back home were about the same.. so if it`s generally 10* warmer that`s good news.
Just to get out of town during those long dark days of winter would be nice to clear my head.


https://cimg5.ibsrv.net/gimg/www.off...e5a3826682.jpg
https://cimg4.ibsrv.net/gimg/www.off...2ed608cac8.jpg

If the slip at the condo is 16 wide you want to lease the other side..........:D.....a little help for those HOA's