STR Mountain Towns

[Kaylyn Schroka]

Looking at potentially investing in the mountains of Colorado, specifically Alma, Fairplay & Bailey. Does anyone have any insight on how STR perform in these areas or know where I can gather some performance information from?

Also, open to other opinions on where to look to invest in the mountains of Colorado.

[John Underwood]

First try looking on Vrbo and Airbnb in mountain areas your interested in.

Look where there may be high demand by looking at people's calendars (occupancy) and nightly rates.

By doing this you will be able to extrapolate their gross income, then you could play with numbers on the expense side and taking into a mortgage payment to see what if any areas are viable or at what price point.

What amenities, views location do the top performers have that you could duplicate?

This will help you identify location, size of house and max price you should pay based on different variables.

If you put this data into a spreadsheet you can play with the numbers for "what if" scenarios.

If you find some low producers that just need a remodel, professional pictures or some added amenities you might be able to reach out to these owners and see if you can find a burnt out STR owner that would rather sell, then you make the changes you see they need to improve the rental house's numbers. This is of course more work but could be much more profitable for you in the long run.