Hello, I have been reading some similar posts as mine, but most are several years old. I apologize if redundant, but I wanted to get some updated opinions about this. I'm planning on purchasing a condo as a rental property in Breckenridge, CO. I'm looking for a place with a close walk to both the mountain (preferably ski in/out) and town. My goal would be to use the property myself maybe 1-2 weeks per year at most, and rent the unit out the remainder of the year. Since I live out of state, I would need to use a full service property management company for renting it out, housekeeping, etc. I realize that takes a huge portion of profits, I've heard 35%-50% or so.

My goal would be to get close to breaking even, if not perhaps even turn a profit eventually (optimally). From reading some of the other threads, it sounds like it is difficult to turn a net profit many of the times with this arrangement I'm considering. I'd be planning on likely putting the standard 10% down, unless there are strong reasons to do more.

With that said, I'm curious if anyone here has a similar condo rental property in Breckenridge and has any tips or suggestions for doing this, or if anyone here does comfortably break even, or make a decent profit despite high full property management services, fees, etc. Most of what I've read seems to shy away from doing something like this. However, I'd like to have a place that I can call my own there and have the rental income pay for my couple weeks of use there, as well as most/all of the net annual costs. How likely would it be to accomplish that?

I would be looking for a 2 bedroom (preferably, but not opposed to 1 bedroom plus a murphy bed in a different room if couldn't find a reasonably priced 2 bedroom) with a short walk to the mountain base (preferably ski in/out) and to town. For those with condo experience in Breck, what price ranges would you consider a very good deal for this scenario of what I'm looking for? 

Also, any recommendations on the best months to buy if there are better buyer market windows for that area? Any recommendations for the best priced full property management service companies in that area? Colorado Rocky Mountain Resorts is the name I've been given by a realtor in Breck thus far.

My eventual goal is to have an investment rental property condo in Breckenridge, CO as well as Hilton Head Island, SC, and between the both of them not only break even but hopefully turn a net profit. I know the Hilton Head Island condo discussion would include different sets of variables, so I'll save that for a different thread.

Thanks so much!!

As you mentioned using a PM will take a huge cut of your gross income. It is not that difficult to self manage. VRBO and Airbnb give you the tools to manage it. Then you need a great full service cleaning crew that can handle turnovers for you, restock consumables and be your eyes and ears. Then a handyman for small maintenance issues, which will be few in a condo compared to a SFH.

Then make sure the area is condusive to vacation rentals and then make sure this is permitted in the condo HOA before making any offers.

@John Underwood thanks, appreciate the input!

Hi @Eric Baron , I would think twice about a place there. Summit county is getting ready to increase the tax rate on vacation rentals from 12% to 29%. Making them commercial properties.

https://www.summitdaily.com/ne...

@Michael Baum wow, thanks for the heads up. I’ll definitely need to check into that.

I don't have any experience owning in Breck but ski in the area (including this weekend) sometimes.  From that perspective in terms of turning a profit or breaking even you have a lot going against you here.

1) Breck is not really a year round destination.  Spring in particular is very dead.

2) PMs in the area are expensive, which you seem aware of, but this is a huge cut off the top.  Remember they take 30-40% of your gross rent, not just the profits.

3) While using it 1-2 weeks isn't a ton, I'm assuming you'll be using it during the winter, which is taking 1-2 weeks off of the time of year where you'd be making all your real money on already slim (or negative) margins.

I'd be interested to hear from some folks that have specific experience in the area but it seems like an uphill battle.

@Ryan Moyer I'm not sure when the last time you were in Breckenridge, but believe me-it is a year-round destination. Our tourism board has done an amazing job bringing in travelers and guests all throughout the year. Our spring is still packed due to "Spring Massive" and just as that wraps up, we'll maybe have 2-3 weeks of downtime before the May guests start arriving. Our fall is even busier. I've been in town for 20 years and sell real estate full time here and can truly attest to the year-round destination we have. Gone are the days of mud-season and a deserted Main St. 

The commercial property tax bill was squashed this week. 

PM companies range from 15%-35%. I'm sure there are a few who charge more than 35%, but there are other less expensive options that do a fantastic job.

This is definitely a very solid STR area however prices are pretty high there esp for ski in ski out (actually most any ski area in CO that is ski in ski out ). Looking at around 600-700 sq ft or higher. while definitely could pull profits on a rental, this would be pretty difficult with only 10% down. Unless of course you self manage. there are numerous threads that on here about self managing and several members that are even willing to chat with you about self managing. it can be done remotely. we are close to a couple from florida self managing in winter park.

most of these towns are year round places now outside the months of say late april/may (wet season) and october / early nov.  (pre-ski).  

also on the 29% ...i recently started a thread on this ... worth reading a bit.  the increase is on how the calculation is done so it isnt a full 29% property tax but it does raise taxes from say 2800 to say 9000 or so.  pretty significant but likely not to pass.  something to follow though.

also as others state, most of your income will be winter months.  keep that in mind when planning your 1-2 week visits. 

lastly you can use a service like evolve for only 10% that handles a lot of stuff but still requires you to be active.  will help cut costs of management and share some responsibility.  still managing across state lines is plenty doable.

brek is a great area...  winter park is gaining pace fast...  ski in / ski out is not fully necessary to get more bang for your buck and in some cases may not be optimal from a year round perspective.  in fact some are buying in towns that are a few miles away from resorts and doing really well.

happy to chat more if you want to PM.  im no expert but have been researching a ton lately.  just learning myself....  happy to share what i have seen though.

Bo

Originally posted by @Eric Baron :

Hello, I have been reading some similar posts as mine, but most are several years old. I apologize if redundant, but I wanted to get some updated opinions about this. I'm planning on purchasing a condo as a rental property in Breckenridge, CO. I'm looking for a place with a close walk to both the mountain (preferably ski in/out) and town. My goal would be to use the property myself maybe 1-2 weeks per year at most, and rent the unit out the remainder of the year. Since I live out of state, I would need to use a full service property management company for renting it out, housekeeping, etc. I realize that takes a huge portion of profits, I've heard 35%-50% or so.

My goal would be to get close to breaking even, if not perhaps even turn a profit eventually (optimally). From reading some of the other threads, it sounds like it is difficult to turn a net profit many of the times with this arrangement I'm considering. I'd be planning on likely putting the standard 10% down, unless there are strong reasons to do more.

With that said, I'm curious if anyone here has a similar condo rental property in Breckenridge and has any tips or suggestions for doing this, or if anyone here does comfortably break even, or make a decent profit despite high full property management services, fees, etc. Most of what I've read seems to shy away from doing something like this. However, I'd like to have a place that I can call my own there and have the rental income pay for my couple weeks of use there, as well as most/all of the net annual costs. How likely would it be to accomplish that?

I would be looking for a 2 bedroom (preferably, but not opposed to 1 bedroom plus a murphy bed in a different room if couldn't find a reasonably priced 2 bedroom) with a short walk to the mountain base (preferably ski in/out) and to town. For those with condo experience in Breck, what price ranges would you consider a very good deal for this scenario of what I'm looking for? 

Also, any recommendations on the best months to buy if there are better buyer market windows for that area? Any recommendations for the best priced full property management service companies in that area? Colorado Rocky Mountain Resorts is the name I've been given by a realtor in Breck thus far.

My eventual goal is to have an investment rental property condo in Breckenridge, CO as well as Hilton Head Island, SC, and between the both of them not only break even but hopefully turn a net profit. I know the Hilton Head Island condo discussion would include different sets of variables, so I'll save that for a different thread.

Thanks so much!!

You don't need a full service PM. STR Property managers are simply schedulers. Don't let a scheduler take your profits. Either self-manage like many on here do, or hire an inexpensive offshore PM who works US hours & speaks eloquent English (that's what I do). Mine can set door codes, message (or call) guests, schedule cleaners, adjust the thermostat, monitor my cameras, & call a plumber just as easily as a local PM can, for 1% of the cost.

Hire good cleaners, a solid handyman & befriend some helpful neighbors. Save your money on PMs & pay these people well instead. Call me crazy, but I prefer to spend my money on people who will actually see the inside of my houses, not a scheduler

@Tanya Delahoz thanks for clarifying those points, very helpful and reassuring!

@Mark Miles great ideas, thanks!

@Bo A Vanecko thanks for the input, appreciate it!

Here is the update to the 29% commercial property tax bill. It's been squashed! 

https://www.summitdaily.com/news/high-country-real-estate-professionals-head-to-capitol-in-an-effort-to-kill-short-term-rental-tax-bill/

@Tanya Delahoz great to hear. That would’ve been a nightmare!

There’s a lot of great info here.   Has anyone come across an actual or estimated balance sheet?  Even a proposed one from a builder for marketing purposes?    I realize they are all different but an idea of the real expenses and income could help me be more serious about a purchase. .  I’d love to get 5 to 10 years of rental income before retirement.   Thanks all 

@Kevin Anderson I've been doing a lot of research into this topic as I've been interested in eventually having a STR in Breck and Hilton Head. From speaking to a lot of people including long time realtors in these areas, it seems most STR owners aim to "break even" each year and most do not actually make a profit after costs. I'd love to hear experiences otherwise as I was disappointed to hear that. With that said, breaking even to have a place to stay for free a couple times per year wouldn't be all that bad either, just not sure it's worth all the hassle.