Lake Oroville

Short-Term Rental Investment

0 Canyon Creek Rd, Berry Creek, CA 95916

80.5

Investment Score

Grade B

Rating

12.38%

Cap Rate

Investment Overview

Executive Summary

$138,000

Purchase Price

$37,241

Annual Revenue

$17,141

Net Operating Income

Key Investment Highlights
✓Exceptional 12.38% unleveraged cap rate
✓Unique "Tiny Home Lake Retreat" positioning
✓8.34 acres with breathtaking lake views
✓Included boat, water tanker, tractor, vehicles
✓Strong market demand from boating enthusiasts

Property Details

Property Overview

Specifications

Address: 0 Canyon Creek Rd, Berry Creek, CA 95916

Lot Size: 8.34 acres

Square Footage: 472 sqft

Bedrooms: 1 | Bathrooms: 1

Distance to Lake: 2 miles (8 minutes)

Distance to Boat Launch: 2 miles to Foreman Creek

Included Assets

✓Boat (for guest use)
✓Water tanker
✓Tractor
✓Multiple vehicles
✓Secure Conex container
✓Brand-new water tanker

Market Research

1-Bedroom Comparable Analysis

Property	Type	Location	Nightly Rate
Trank Family Farm	Whole Home	Oroville	$75/night
Oroville Home Stay	Whole Home	Oroville	$99/night
Western Wonder	Whole Home	Oroville	$133/night
2 Mi to Feather River	Whole Home	Palermo	$180/night
Market Average	Whole Home	Oroville Area	$118/night

Subject Property Premium

Lake views (+$40-60/night) + Tiny home trend (+$20-40/night) + Private acreage (+$20-35/night) + Boat access (+$15-25/night) = +$105-175/night above comparable average

Revenue Strategy

Dynamic Pricing by Season

Peak Season (Jun-Aug)

Weekday: $200-230/night

Weekend: $240-280/night

15-20% weekend premium

Shoulder Season

Weekday: $150-180/night

Weekend: $180-220/night

10-15% weekend premium

Off-Peak Season

Weekday: $110-140/night

Weekend: $130-160/night

5-10% weekend premium

Blended Average ADR: $180/night

Financial Projections

Annual Revenue Forecast

Month	Weekday ADR	Weekend ADR	Occupancy	Revenue
January	$120	$140	28.0%	$1,075
June	$210	$260	65.0%	$4,524
July	$220	$270	75.0%	$5,445
August	$220	$270	72.0%	$5,227
ANNUAL TOTAL			47.5%	$37,241

Peak demand in summer (June-August) with 65-75% occupancy

Operating Analysis

Operating Expense Breakdown

Expense Categories

Property Management
10% of revenue
$3,724

Cleaning & Turnover
8% of revenue
$2,979

Maintenance & Repairs
5% of revenue
$1,862

Utilities
Electric, Water, Gas
$1,800

Financial Summary

Gross Revenue

$37,241

Operating Expenses

$20,100

Net Operating Income

$17,141

54% expense ratio

Financial Performance

Investment Metrics

Unleveraged Returns

Annual Revenue $37,241

Operating Expenses $20,100

Net Operating Income $17,141

Cap Rate 12.38%

Leveraged Returns (80% LTV)

Loan Amount $110,400

Down Payment $27,600

Annual Debt Service $9,100

Annual Cash Flow $8,041

Cash-on-Cash Return 29.1%

Capital Strategy

Financing Options

DSCR Loan
(Recommended)

LTV: Up to 80%
Rate: 6.5%-8.5%
Term: 20-25 years
DSCR: Min 1.25x
Subject: 1.88x ✓

Portfolio Lender

LTV: 60-75%
Rate: 6.0%-7.5%
Term: 15-20 years
Qualification: Flexible
Speed: Faster

Cash Purchase

Debt Service: $0
Cash Flow: $17,141
Cap Rate: 12.38%
Capital: $138,000
Leverage: None

Risk & Compliance

Regulatory & Due Diligence

Butte County STR Regulations

Jurisdiction:
Unincorporated Butte County

Permit Required:
Administrative Permit

Permit Cost:
$219.45

Annual Renewal:
Required

Critical Due Diligence

✓Verify property zoning (NOT VLDCR)
✓Confirm owner-occupancy requirements
✓Obtain Administrative Permit
✓Verify STR eligibility
✓Review county ordinance
✓Confirm no HOA restrictions
✓Verify water rights
✓Septic system compliance

Risk Level: LOW

Market Strategy

Market Positioning & Target Market

Boating Enthusiasts (35-45%)

Lake Oroville premier boating destination. Included boat is major draw. Proximity to Foreman Creek Boat Launch.

Outdoor Recreation (25-35%)

Hiking, fishing, water sports. Private acreage for outdoor activities. Nature lovers seeking seclusion.

Tiny Home Seekers (15-25%)

Growing trend of minimalist travel. Instagram-worthy property. Unique accommodation experience.

Remote Workers (10-15%)

Starlink internet capability. Peaceful, distraction-free environment. Monthly rental potential.

Unique Selling Proposition

"Escape to your private lake retreat: 1-bed tiny home on 8+ acres with breathtaking Lake Oroville views, included boat, and complete seclusion."

Risk Management

Risk Assessment & Mitigation

Seasonal Demand Fluctuation

Occupancy varies 28-75% by season. Mitigated by dynamic pricing and off-season promotions.

Market Saturation

Growing tiny home market. Differentiate with unique amenities and maintain quality standards.

Regulatory Changes

Monitor county ordinances. Maintain compliance with all STR requirements.

Occupancy Below Projections

Conservative projections. Marketing investment and flexible pricing strategies.

Property Damage

Comprehensive insurance. Security deposit and thorough guest screening.

Maintenance Issues

Preventive maintenance schedule. Emergency repair fund allocation.

Overall Risk Level: MODERATE-LOW

Scoring Methodology

Institutional Investment Scoring

Category	Score	Weight	Weighted
Financial Performance	88	30%	26.4
Market Demand	82	20%	16.4
Regulatory Environment	85	15%	12.75
Location/Proximity	79	15%	11.85
Unique Amenities	88	10%	8.8
Financing Feasibility	75	10%	7.5
OVERALL SCORE		80.5 \| Grade: B

Analysis Comparison

Original vs. Revised Analysis

Metric	Original	Revised	Variance
Average ADR	$210/night	$180/night	-$30 (-14.3%)
Annual Revenue	$40,134	$37,241	-$2,893 (-7.2%)
Operating Expenses	$21,656	$20,100	-$1,556 (-7.2%)
NOI	$18,478	$17,141	-$1,337 (-7.2%)
Cap Rate	13.34%	12.38%	-0.96%
Investment Grade	B	B	Maintained

Key Insight

Conservative comparable-based pricing reduces returns by 7.2%, but property remains a strong Grade B investment with exceptional 12.38% cap rate.

Implementation

Implementation Timeline

Phase 1: Due Diligence (Weeks 1-4)

✓Verify property zoning
✓Review STR ordinance
✓Inspect septic/water
✓Title search
✓Environmental assessment
✓Legal review

Phase 2: Financing (Weeks 5-12)

✓DSCR loan pre-approval
✓Loan application
✓Property appraisal
✓Finalize loan terms
✓Obtain insurance
✓Obtain STR permit

Phase 3: Setup (Weeks 13-16)

✓Deep clean & repairs
✓Professional photography
✓Create listings
✓Dynamic pricing setup
✓Property management
✓Security systems

Phase 4: Launch (Week 17+)

✓Activate Airbnb/VRBO
✓Social media marketing
✓Begin reservations
✓Monitor occupancy
✓Gather reviews
✓Optimize operations

Total Timeline: 4-5 Months

Investment Recommendation

PROCEED WITH INVESTMENT

Grade B - Strong Investment Opportunity

Key Strengths

✓Exceptional 12.38% cap rate
✓Strong $17,141 annual NOI
✓Unique market positioning
✓Favorable financing available
✓STR-friendly regulations

Expected Returns

Unleveraged: 12.38% annual return

Leveraged (80% LTV): 29.1% cash-on-cash return

5-Year Equity Build: ~$45,000+ (principal + appreciation)

Questions & Discussion

Let's discuss this investment opportunity

Available Resources

✓Full investment report (50+ pages)
✓Detailed financial model
✓Comparable analysis
✓Regulatory checklist

Next Steps

1. Review detailed report
2. Schedule property tour
3. Consult real estate attorney
4. Obtain financing pre-approval