First time buyer, outer Denver / Colorado Springs market

Member since 2025 · 1 post · 2 votes

My wife and I are first-time STR buyers looking to find our first property in the foothills or mountain areas around Denver or Colorado Springs.

We like the market for its appreciation and cash flow potential and as a nice spot to vacation for our family.

We're working with an STR-focused real estate agent there and trust we're getting good advice, but would love to hear any helpful tips or advice from the forum here on getting started and this market in particular.

Thank you all!

2 Reply

134 views

Most Popular Reply

James Carlson

Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes

Quote from @Marcus R.:

Reach out to @James Carlson

Thanks for the shout-out, Marcus.

@Christopher Schulte

The big two things I watch out for with my STR clients are:

1. Revenues. Colorado mountain sellers try to tell you all the time "it's been a great short-term rental" all the time, but the numbers don't lie. (Just reviewed a house listed at $1.1M, agent said it's been a "successful Airbnb," and the revenues are just over $60k. That's not even close to good enough.)

So check and double check with AirDNA. I suspect your realtor has a subscription to it.

2. Laws. These are changing all the time. There's are increasingly few areas in the foothills outside of Denver or Colorado Springs that allow for non-owner occupied STRs. (Or that allow them and are not past their cap.)

Gilpin and Clear Creek are out. JeffCo has super onerous (and problematic) licensing rules. Park County is looking at regulations. Teller County (west of COS) is likely to have regulations by the end of the year, according to the county commissioner I've been talking with.

And my standard advice to my STR investors is the same right now -- bring your A-game. The market is tight, and you've got to buy unique, design the hell out of it, furnish well, add cool amenities and pay for killer photography.

Good luck!!

1 Reply

See this reply in the discussion

7 Replies

Jump to latestLatest

Sort by

Grant SchroederPro Member
Lender · OR ID AZ CA WA CO NV TN MT · Member since 2018 · 598 posts · 312 votes
1y
@Christopher Schulte thank you for posting! I would definitely recommend you connect wiht @Dan Guenther! He is a rockstar realtor and investor that is a great person to connect with in the area.
[email protected]541-231-1256
0 Reply
Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 931 votes
1y
@Christopher Schulte
Congrats on taking the leap into STR investing, Christopher! Denver and Colorado Springs both have strong demand, but also keep an eye on regulations since they can change quickly in mountain and vacation markets. A couple of things that help first-time STR buyers: really dig into seasonality when running your numbers (winter vs summer demand), budget extra for furnishing/marketing since guest experience drives reviews, and line up reliable cleaners/maintenance early—it can make or break your operations. I personally invest in the Midwest, but many of the same fundamentals apply: know your tenant/guest demand, stress test your numbers, and build a local team you trust.

[email protected]614-418-6081
0 Reply
Dan GuentherBusiness Member
Real Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
1y
Thanks for the shout @Grant Schroeder!

@Christopher Schulte welcome to the BiggerPockets forums! It sounds like you might already be set on the agent side here but let me know if there's anything I can do to help down the road.
Good luck on your search!
[email protected]720-295-1082
Ten Ridge Realty LLC514 Reviews
Website View Page
1 Reply
Marcus R.
Real Estate Agent · Denver CO · Member since 2019 · 209 posts · 332 votes
1y
Reach out to @James Carlson
1 Reply
- James Carlson
  Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
  1y
  Quote from @Marcus R.:
  
  Reach out to @James Carlson
  
  Thanks for the shout-out, Marcus.
  
  @Christopher Schulte
  The big two things I watch out for with my STR clients are:
  1. Revenues. Colorado mountain sellers try to tell you all the time "it's been a great short-term rental" all the time, but the numbers don't lie. (Just reviewed a house listed at $1.1M, agent said it's been a "successful Airbnb," and the revenues are just over $60k. That's not even close to good enough.)
  
  So check and double check with AirDNA. I suspect your realtor has a subscription to it.
  2. Laws. These are changing all the time. There's are increasingly few areas in the foothills outside of Denver or Colorado Springs that allow for non-owner occupied STRs. (Or that allow them and are not past their cap.)
  Gilpin and Clear Creek are out. JeffCo has super onerous (and problematic) licensing rules. Park County is looking at regulations. Teller County (west of COS) is likely to have regulations by the end of the year, according to the county commissioner I've been talking with.
  And my standard advice to my STR investors is the same right now -- bring your A-game. The market is tight, and you've got to buy unique, design the hell out of it, furnish well, add cool amenities and pay for killer photography.
  Good luck!!
  1 Reply
Bobby Genser
Member since 2023 · 3 posts · 0 votes
1y
Hi James,
I’m Bobby. I own a few properties in Denver. One of them is close to Downtown Denver that I’ve operated as a short-term rental for a little over 3 years. During the first year, I used a property management company, and for the past two years I’ve been self-managing. Over that time, the property has consistently generated around $70K annually in revenue.

Occupancy runs about 85% throughout the year, we have an average rating of 4.8 starts on Airbnb and 10 stars with Booking.com with over 200 reviews. Given the house, amenities, and location, and competition, I feel there may still be room to improve performance. You seem to have a lot of experience in this space, so I'm curious — in your view, what qualifies as a "successful" STR?

I’d also love to hear your thoughts on strategies or adjustments that could help push revenues beyond the current level.
Thanks for your input!
0 Reply
Tanner PileBusiness Member
Real Estate Broker · Colorado Springs, CO · Member since 2019 · 388 posts · 326 votes
1y
@Christopher Schulte
For STRs your furniture and design budget needs to be calculated for your up front costs and often times does not make a STR worth it right now. You'll likely need to do a higher downpayment or do something creative with the seller.
Tanner Pile4.931 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.