First time buyer, outer Denver / Colorado Springs market

[Christopher Schulte]

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!

[James Carlson]

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!!