Potential opportunity for STR but not sure if it's a good idea

Salt Lake City, Utah
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Potential opportunity for STR but not sure if it's a good idea

Austin B.
Member since 2021 · 24 posts · 32 votes

I'm interested in getting into STR. I'm in the process of selling my home in Utah and although I don't know where I'll go next, I DO know that I don't want to be permanently tied down anywhere. I'm a single guy and I just need a little more flexibility in my life at present.

My parents are going through a divorce and one of the properties they own is a small but immaculate cabin in South Park, Colorado. My Mom takes unbelievably good care of all her property, so this cabin is absolutely top-of-the-line. As part of the divorce they need to sell the property. I am considering purchasing it myself. I did some cursory research on AirDNA and the numbers look pretty good -- 77% year-round occupancy. This house is an hour from Breckenridge and 2 hours from Denver, and two hours from Colorado Springs. Despite that, it's very quiet and feels like "the middle of nowhere."

How would I go about researching whether this is a good idea or not? I can not manage it myself, so I would have to hire somebody to do that for me.

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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y

Don't forget to do your own research on VRBO and AIR, comparing similar properties. Air DNA is just a computer algorithm.

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  • Quinn OlivarezBusiness Member
    Real Estate Agent · Houston, TX · Member since 2021 · 115 posts · 131 votes
    4y
    Quote from @Austin B.:

    I'm interested in getting into STR. I'm in the process of selling my home in Utah and although I don't know where I'll go next, I DO know that I don't want to be permanently tied down anywhere. I'm a single guy and I just need a little more flexibility in my life at present.

    My parents are going through a divorce and one of the properties they own is a small but immaculate cabin in South Park, Colorado. My Mom takes unbelievably good care of all her property, so this cabin is absolutely top-of-the-line. As part of the divorce they need to sell the property. I am considering purchasing it myself. I did some cursory research on AirDNA and the numbers look pretty good -- 77% year-round occupancy. This house is an hour from Breckenridge and 2 hours from Denver, and two hours from Colorado Springs. Despite that, it's very quiet and feels like "the middle of nowhere."

    How would I go about researching whether this is a good idea or not? I can not manage it myself, so I would have to hire somebody to do that for me.

    If you don’t know how to analyze a STR deal, I would learn that first. There are lots of great resources here and elsewhere. Next, when you do understand the basics, start doing some research. Airdna, enemy method. Good luck, sounds like an interesting opportunity!
    [email protected]832-607-2941
    Quinn Olivarez @ J. Lindsey Properties57 Reviews
    WebsiteView Page
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  • Quinn OlivarezBusiness Member
    Real Estate Agent · Houston, TX · Member since 2021 · 115 posts · 131 votes
    4y
    Quote from @Austin B.:

    I'm interested in getting into STR. I'm in the process of selling my home in Utah and although I don't know where I'll go next, I DO know that I don't want to be permanently tied down anywhere. I'm a single guy and I just need a little more flexibility in my life at present.

    My parents are going through a divorce and one of the properties they own is a small but immaculate cabin in South Park, Colorado. My Mom takes unbelievably good care of all her property, so this cabin is absolutely top-of-the-line. As part of the divorce they need to sell the property. I am considering purchasing it myself. I did some cursory research on AirDNA and the numbers look pretty good -- 77% year-round occupancy. This house is an hour from Breckenridge and 2 hours from Denver, and two hours from Colorado Springs. Despite that, it's very quiet and feels like "the middle of nowhere."

    How would I go about researching whether this is a good idea or not? I can not manage it myself, so I would have to hire somebody to do that for me.

    This forum is a good resource for the learning. YouTube and books are too. Incidentally, some of the best YouTube creators in the STR space are also part of BiggerPockets. Same goes for the books on the subject; Avery carls book is very helpful. 
    [email protected]832-607-2941
    Quinn Olivarez @ J. Lindsey Properties57 Reviews
    WebsiteView Page
    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Don't forget to do your own research on VRBO and AIR, comparing similar properties. Air DNA is just a computer algorithm.

    1Reply
  • Kayla Givens
    Lender · Denver, CO · Member since 2021 · 243 posts · 253 votes
    4y

    Hey, @Austin B.! Sounds like a really great opportunity to get your foot in the door with STRs! I'm sure you could make a killing with a place like that - lots of people in this area looking to get away from the daily grind and just relax!!

    I'd recommend getting connected with an investor-friendly realtor down that way and get familiar with the local rules/regulations in South Park. Here is a link to Park County's website with some info on STR's. Try reaching out to them via email to get a better idea of rules/regs as there isn't a ton of information provided.

    Similar to what other's have mentioned, utilize tools like AirDNA to analyze the property and see what your potential earnings could look like. You might even try reaching out to other STR operators on Airbnb or VRBO in the area and see if they'd be willing to share any insight or information with you.

    Best of luck!

    0Reply
  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    4y

    Hey @Austin B. Vacasa just named Fariplay one of the best bangs for your buck for STRs. I bet it would do well there. 

    The Assumable Guy544 Reviews
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  • Kathy Henley
    Rental Property Investor · St. Louis, MO · Member since 2014 · 741 posts · 424 votes
    4y

    @Austin B. You mentioned that the property needs to be sold because of a divorce. The property will be appraised and its value used to divide the marital assets. Figure out how to buy it. Would you get a loan to buy it? Or, could you buy out one parent and sign a promissory note to the other? If you parents aren't cooperating with your plan, don't take it personally.

    Second, figure out the cost of running a business in the house. Include property management costs, estimate a budget for the furnishings, insurance, utilities, snacks, security, housekeeping, amenities. Look at the competition for guidance on market rents and degree of perks to make a success of the seasons. Can you make money? Does the income - expenses = satisfying return on the money tied up in the deal? Can you be at ease with someone else managing the business?

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  • Kim Gibson
    Member since 2020 · 24 posts · 19 votes
    4y

    Check out property managers in the area.  My in-laws own a cabin in Island Park, ID.  Similar vibe, small vacation town.  The issue is lack of property managers/ cleaners.  Lots of cabin owners want to rent out their cabins but there is a no-one who will clean and manage the properties.  There is no affordable housing in the area, no apartments, so no-one in the area who is willing to work.  Most of the residents are retired and don't want a job.  

    Something to think about...

    0Reply
  • Logan McKay Zylstra
    Realtor · Provo, UT · Member since 2020 · 374 posts · 270 votes
    4y

    It's great that you know what you want your life to look like. I think gathering STRs in various states is a great way of doing that. With that being said, I think you should look into mid-term rentals so you'll be able to plan your next move with more ease and don't have to worry about all the common STR tenant problems in a place where you live frequently as well.

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