Balsa works well for a floating lure if you are tying to the hook. You can find it at a Michaels, or at a model hobby shop. If you are anchoring the hooks into the lure, you need a harder, tight grained wood, well dryed. After coating it and the coating cures, drop it in a jar of cod liver oil. (The oil out of a can of sardines or kippered herring works too). To be honest, if you soak it in fish oil, you probably don't need to paint it at all. Size and shape are most important.
In the past, I made a couple lures out of an old rake handle, and they worked as well as the commercial ones. Of course I also made some spoon baits out of household spoons and a bit of iridescent striping used for car pin striping and had luck with those, too. This wasn't because of my skill at lure making or as a fisherman, it was 'cause I got lucky once in a while. Let's face it, even a stopped clock is right twice a day!!:mrgreen: