Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
The details:
Total of 7 beds, 4 baths divided into 3 units in Steamboat Springs, CO
Purchased off MLS for $695,000, 25% down.
Approximate remodel & Setup Cost: $200,000
Total Cost of project upfront: $373,750
Traditional Mortgage acquired. Current payment: $3450/ mo. Currently working on a refinance to pull the money back out for remodel.
Launched on Airbnb in late November 2018.
Revenue for 12/18-3/19: Approx. $80,000
Total Profit after all costs 12/18-3/19: Approx. $30,000
Ended up having some unexpected repairs needed after starting up. Should have been closer to $40,000 but unexpected water heater replacement in 2 units and a flooding issue cost approximately $9,000.
Goal for 2019 Revenue of: $150,000
Profit: $60,000
Superhost status Maintained.
I'm happy to answer any questions about the renovation and what we are doing now! Would love to help others get up and running. Airbnb is a great business!!!
Rental Property Investor · Steamboat Springs, CO · Member since 2017 · 255 posts · 154 votes
7y
Really nice job! Keep us posted with how the numbers work out. I run the local real estate meetup in Steamboat, and "do AirBNB's work here?" is far and away the most common question I get asked.
Are you using a PM in town, or self-managing from Denver?
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
@Rick Imby thanks for the support. It was the busy time of the year so the numbers are definitely good. Going into the mud season so our ADR will be a lot less for the next couple months.
Rental Property Investor · Steamboat Springs, CO · Member since 2017 · 255 posts · 154 votes
7y
Really nice job! Keep us posted with how the numbers work out. I run the local real estate meetup in Steamboat, and "do AirBNB's work here?" is far and away the most common question I get asked.
Are you using a PM in town, or self-managing from Denver?
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
@Aaron H. I’d love to come to the steamboat meetup some time and even talk about my experience with Airbnb’s up there. I have 5 units that I own and manage 2 others. I think the numbers can definitely work but not on every property. I found the multi family properties to be the best value when I purchased.
I manage my own properties from Denver but have a strong cleaning/ 24 hour contact in Steamboat who handles any issues that come up during a stay.
Rental Property Investor · Steamboat Springs, CO · Member since 2017 · 255 posts · 154 votes
7y
@Jake Cohen We'd love to have you! It's typically a pretty informal happy hour the second Wed. of the month, but you can check out the details on any upcoming events on the Meetup.com page (search Steamboat and Real Estate).
Or, drop me a line if you're ever in town and want to go skiing/climbing/grab a drink and chat real estate.
Rental Property Investor · Scottsdale, AZ · Member since 2018 · 49 posts · 44 votes
7y
@Jake Cohen Congrats, amazing property and great financials! I don't know your area at all other than where to find it on a map, but I also operate in a strong winter/spring seasonal market in Scottsdale. Are HOAs a big deal in your area? They seem like they would be. Have HOAs impacted how you operate?
In North Phoenix/Scottsdale I verify all minimum stay requirements with the HOA before even touring a property, and it seems like only about 1/3 or the properties I investigate allow short term rentals. It also seems like the general public is not so enamored with Airbnb the way it was a few years ago. My local NextDoor App has had a thread complaining about bike week guests at air bnb houses for a week now, while AZCentral.com has run a couple stories about non HOA neighborhoods changing their CCRs or similar restrictions by hiring a lawyer to tally a neighborhood owner vote and then setting forth the changes.
What seemed like the early days of the internet now does not as much...
Rental Property Investor · New Gloucester, ME · Member since 2017 · 32 posts · 5 votes
7y
Hi! i love your place. I have a duplex in North Topsail Beach, NC. We airbnb one side and live in the other side. Its so easy for issues.
Airbnb is a great strategy. I'm looking to find another airbnb investment. Right now, my current unit is strict vacation rental. Busy in the spring/summer. What made you purchase your multi unit in Steamboat Springs?
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
@David M. Yes HOAs are huge in Steamboat. However that I why I targeted a small multi family property so I wouldn't have to be involved with HOAs. I now have a duplex and a triplex. In steamboat most HOAs allow short term rentals because probably 50% of all condos are owned by people that don't live there full time. It has been ingrained in the market and I don't see that changing soon. I like the freedom of no HOA so I can make my own decisions on my property.
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
@Taylor Chiu I think the Zillow estimate is about $810,000 which doesn’t take into account the change in condition of the property. My guess would be it would appraise close to $1 Million now.
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
@Lisa Sessions the main reason I started looking in Steamboat is because I love going to steamboat. It is a fantastic winter and summer destination and I hope to move there someday. It also is the least expensive of the mountain main towns in Colorado. When I started working the numbers, they worked so I went for it. I didn’t know much about Airbnb at the start but love the strategy now. What made you choose NC?
Rental Property Investor · Auburn, ME · Member since 2015 · 36 posts · 23 votes
7y
Congrats @Jake Cohen! I used to live in Steamboat but moved back to Maine to get started in a more affordable market. I'll make it back to the 'boat later this year. Multi-units don't seem very common in town, whereabouts is the building located? How much did you spend on plowing and shoveling this past winter?
@Aaron H. Looking forward to attending the meetup soon!
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
@Eric Pierpont it is located in the mountain area of steamboat near Herbage Condos. It's about 1 mile from the base area and right across the street from a bus stop. I think the location is very convenient for people to enjoy Steamboat!
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
@Jonathan Conaghan thanks for the reply. Appreciate the support. It's crazy. I've been done with the project for almost 6 months and this was my first chance to post it!
Rental Property Investor · New Gloucester, ME · Member since 2017 · 32 posts · 5 votes
7y
@Jake Cohen my sister lived 30 mins from our desired location for the Airbnb. We loved it so much that when the other side of the duplex was for sale, she bought it. She’s my co host. We get family vacations but also military families since we are close to three mil bases.
I’m trying to establish new criteria that doesn’t include : my sister lives next door!