Selling My Taos STR – 6.8% Cap | 8.9% CoC | 32%+ Modeled IRR (Owner-Managed)

I'm selling a short-term rental we've owned and self-managed since 2023 in Ranchos de Taos, NM and would genuinely appreciate feedback from other STR investors.

Property:
2 bed / 2 bath | 1,350 SF | Santa Fe / Pueblo style
Strong Sangre de Cristo mountain views
Offered at $515,000 (fully furnished, turnkey)

Actual Operating History

2024 Gross Revenue: ~$57,000
2025 Gross Revenue: ~$55,500

COGS + Operating Expenses: ~$21k–$24k

Stabilized 2026 Pro Forma Gross: $59,000
(using conservative assumptions despite platform expansion)

Projected 2026 NOI: $34,917

At $515k purchase price:
• ~6.8% unlevered cap rate
• ~8.9% projected cash-on-cash (25% down scenario)
• Modeled 5-year annualized return ~32% (includes appreciation at 5.8%, depreciation, interest deduction, and cash flow)

Happy to share full underwriting for anyone who wants to poke holes in it.

Why It Performs

This has been fully self-managed remotely. In my experience, owner-operators outperform third-party managers in STR by a wide margin. A 20–30% management layer materially compresses returns.

What drives bookings:
• Mountain views from property
• Southwest architectural character
• Hot Tub, Gazebo, Kiva fireplace
• Proximity to Taos Plaza & Taos Ski Valley
• Quiet valley setting (not in town, not in the mountains) with expansive sunrise / sunset

It operates under county regulations similar to a 1-unit hotel (proper licensing in place).

Why We’re Selling

Portfolio reallocation. Nothing operationally broken.

Curious how others would underwrite this in today's STR environment.

Would you:
A) Run it self-managed
B) Accept lower returns with management
C) Value appreciation differently in Taos

Open to intelligent discussion.
Happy to share OM with serious buyers.

Zillow Listing