Updated almost 4 years ago on . Most recent reply
Does this deal make sense | Rental Property - 12 Hrs Left!
We are looking at a rental income property in a resort town where we live in Crested Butte, Colorado.
Details:
Asking Price: $498,950
SQF: 717
Rental Income 2020-2021: $43,928
Average Nightly Rate: $152
Occupancy: 289 nights/year
Total Yearly Expense + Mortgage: $36,072
- - The property is 1 bed 1 bath.
- - Ski in Ski Out location to a ski resort.
- - 100 yards from public transportation bus.
- - 200 yards from a ski lift.
- - Rental income has big potential to go up.
- - We would manage the property on our own.
- - Unit is fully updated and would need no work that the eye can see. Turn key.
The property basically is not hitting the 50% Rule or the 2% rule, no properties in our area are. This would be our first rental property and would be putting 20% down. The upside is that we think we could get the yearly income up with raising rates slightly and really working towards increasing occupancy and getting creative. Does this deal not make any sense, should we move on, or is this something that would make sense in a highly vacationed area!?
Most Popular Reply
Will the STR license transfer with the property? The would be my #1 concern. I'm over in Telluride and the Town is using STRs as a scapegoat for all of the affordable housing issues the town ignored for years. There's an issue on the ballot to significantly reduce STR licenses and move to a lottery system. I seen some articles in national publications on the housing issues in CB, it seems like its a volatile market over there to enter the STR market.