Rental Property Investor · Castle Rock, CO · Member since 2017 · 335 posts · 387 votes
I already have 3 vacation rentals in TN so I know the business. But I live near Denver and I want my next one to be something I can drive the family to and use as a vacation home. Questions: What areas offer the best price/income ratios? Not looking for a $1m condo in Vail. Prefer the classic rustic "Cabin in the woods". No more than 3 hrs from Denver. Do I need to be near a ski resort to make decent income in the winter?
Fairplay was the only place that made Airdna's list of best vacation rental markets. Breckenridge isn't too far from there. I helped a client get a cool property in Idaho Springs that has been doing well on Airbnb. Loveland, A Basin, and Winter Park are fairly close as well as Black Hawk.
Personally, I'm looking at Buena Vista. I like what they've done with the downtown area, it's popular in the summertime, and Monarch is close by.
There are some places further west I like, but they're not within 3 hours of Denver.
Fairplay was the only place that made Airdna's list of best vacation rental markets. Breckenridge isn't too far from there. I helped a client get a cool property in Idaho Springs that has been doing well on Airbnb. Loveland, A Basin, and Winter Park are fairly close as well as Black Hawk.
Personally, I'm looking at Buena Vista. I like what they've done with the downtown area, it's popular in the summertime, and Monarch is close by.
There are some places further west I like, but they're not within 3 hours of Denver.
@Tim Schroeder@Kevin Smith Wow, that's impressive that Fairplay made the Airdna's list of best vacation rental markets! Park County is gorgeous and has plenty of activities to keep you busy if you like the outdoors or just a great place to escape to and soak in the high country views and quiet. The proximity of Alma and Fairplay to Breckenridge is a huge draw. Many locals choose (or are forced due to high prices) to live over Hoosier pass and or just work in Breck or other parts of Summit County. We recently bought a duplex in Alma 4 bed / 4 bath on each side and rent it out long term, but there definitely is plenty of short term rental demand being only 22 minutes from the world class skiing in Breck.
Real estate prices are significantly lower in Park County (Alma and Fairplay) and they're still within 30-45 min of Breck, depending on location and driving conditions due to weather. Appreciation is 20-30% in the last year alone in Breck and that is pushing growth outward to the 'more affordable' areas surrounding it. Aspen, for example, residents are pushed to Basalt, Carbondale and Glenwood Springs an hour away and still commute to where the jobs and money are in the wealthier ski area towns.
We absolutely love Buena Vista as well! The mountain biking and river access are amazing, along with a growing downtown as you mentioned. Like most high demand areas, not much on the market there, but looking for potential partners and plans to buy there as well.
Park and Chaffee Counties are growing and I don't anticipate that slowing down at all with the quality of life these mountain towns provide, especially with the work from home contingent that wants to live where they play and demand for getaways that aren't too far from a major metro.
Fairplay made the list because you get more bang for your buck there. You're still within 30 min drive to the Breckenridge slopes, but also have better access to 14ers to climb in the summertime. High 6 figure condo's in Breck are going to be at the mercy of limited 'customization' since the COA will limit your ability to deck out with amenities (hot tub, games in the yard, firepit) by the nature of how condos are set up whereas Fairplay/Alma cabins you can do those things to your liking with the plot of land you get with the purchase. Condos in Breck are purpose built for ski season, then have a lack of draw in the shoulder season & lower occupancy in the summer than a cabin would. I've had Fairplay on my personal top 10 list. I think at this point it's just a matter of inventory and "Can you even buy something?" The Valley of the Sun neighborhood is set up with a lot of vacation rental properties.
Grand Lake, Tabernash and Granby area is also noteworthy. I'm a bit concerned about the price appreciation there and the NIMBY issue with locals not wanting vacation rental saturation eating up the housing supply. It has same fundamental play as a Fairplay/Alma <> Breck with the proximity to Winter Park and access to skiing.
Steamboat actually has the strongest occupancy % performance of all the Colorado ski towns, but not sure what current inventory looks like.
Buena Vista could be an intriguing spot, but performance tends to dip a little since it's not super close to any ski areas that are located to the north.
Vail: too expensive. Estes Park: Super regulated and exclusive management issues. Black Hawk/Evergreen/Idaho Springs: heavily regulated. Glenwood Springs and anything west of that: too far.
@Tim Schroeder I agree with some of the previous statements about Park and Chafee. I think there is a lot of upside potential further outside the ski areas. South of Summit to FairPlay, Alma, BV, and west to Leadville offer great summer access to recreation and community events with ok access to ski areas, though not the winter peak like you see in resort towns. I also like outside of Steamboat and outside of Winter Park. All of this said, there are some decent condos if you want to pay a little more for your vacation use and favor appreciation over cash flow. I live in Frisco, and it isn’t easy, but there are options around here!
@Tim Schroeder An interesting topic based on all the great feedback and discussion thus far. I did this same model (short term that my family and I could use) you are looking to do up in Grand County. It's always tough making the numbers work. I was able to make them work to my advantage by building. I built two homes. I long term rent the smaller of the two houses out for a few specific reasons, and then I short term rent the larger home out. (Note, this was a modular build.) I was able to build them and pull all of my money out so I own two cash flowing properties without any of my own money left in the deal. In fact, I pulled a little bit more money out than I originally put into the deals. I just finished these up and starting short term renting about a year ago. And while the "COVID" bump in value definitely makes the equity in these two properties even sweeter, they were still positioned strong upon completion from an equity and cashflow perspective.
Net, sometimes you need to look at the situation from a different perspective. Finding something already existing to buy that will cash flow in many of these mountain towns can be tough. Not impossible by any means, but tough. But there are other ways to approach it...traditional build, modular, glamping, etc. that can create a lucrative opportunity from both a financial and a family time perspective.
@Michael Glunk Nice work! Always like to see creative strategies in play. What what the cost comparison with the modular rental?
I’m interested to see if Boxabl can pull off their product, the Casita that Elon Musk lives in. Could change the game to have a unit built in hours instead of months!
@Jake Sklanka When you say cost comparable are you asking about Modular vs stick? Or something else? If it’s modular cost, I was at under $200 a sq ft.
Yes the boxabl seems pretty interesting. Especially if they either get higher end finishes or create an option unfinished that you can finish yourself.