Vacation property in Summit County, Colorado (Frisco Area)

11 Replies

Hi, I am interested in purchasing a vacation property in Summit County, Colorado .  Me and a couple other investors want to go in on a property to minimize our costs during slow times where people are not renting the place.  We would like to make it a short term rental available year around.  We would like to buy a condo or apartment that is fairly low maintenance.  We could manage the airbnb and cleaning service or let the property management do that.  My friend has a place in Beaver Creek that is ski in/out and the management company takes 38%.  I am assuming you can do a lot better when you are out of Beaver Creek and have a simpler building to maintain.  I would like to run some comps for what other airbnbs go for throughout the year, how often they were available, how often they were booked, etc.  But it seems like that data is hard to come by.  Does anyone have experience in this market and can provide me with some info.  It would be nice to model out the projected gross rental income per year based on some solid data.  this information could help us determine our purchase price range and risks.  Thanks in advance for any information.   

Hi Logan,

I'm a real estate investor and brokerage owner in Breckenridge. I have clients all over the world buying property here in Summit to short term rent. I can help you navigate the market, talk to you about rental revenue projections and even long term renting during the off seasons. Feel free to reach out!

Hey @Logan McConnell we operate primarily in Denver but I would be happy to take a look at your projections and see I notice anything missing as well as do my own if you'd like another opinion! 

I'm looking at exactly what you are except my preference is a home. Those condo HOA fees are no joke. I sold a friend of mine a home up there, and he cleared over $100k his first year. There are definitely some tricks to getting the most bang for your buck. You should be able to manage from down here unless an issue comes up. I can get you my guy's cleaner info if you want. They do all the linens too, which is nice.

My group is looking for a home where we would STR it during the "prime time" and use it the rest. We all get along, so overlapping, etc isn't an issue. What are you doing for financing?

Interesting on the HOAs. I do hate HOAs but also like the idea of not dealing with the little things (mowing the grass, snow shoveling, etc.). However, if the numbers are much better for a SFH, then that might be the way to go. I have found some decent condos in the $350-500k range but haven't had time to dig into the numbers associated with the HOA fees. Thanks for the info and the reference for the cleaners!

Originally posted by @Logan McConnell :

Interesting on the HOAs. I do hate HOAs but also like the idea of not dealing with the little things (mowing the grass, snow shoveling, etc.). However, if the numbers are much better for a SFH, then that might be the way to go. I have found some decent condos in the $350-500k range but haven't had time to dig into the numbers associated with the HOA fees. Thanks for the info and the reference for the cleaners!

HOA fees can be astronomical up there. It's a cash flow killer. HOA fees should be on the listing site at the bottom.

@Matt M. Do you have any more info you could share on the place that's cleared $100k in the first year? I started doing some research on mountain properties recently as well, but based on just some quick browsing on what's available on Air BnB and VRBO, that seems way higher than I ever would have thought possible, so I'd love to hear more about that.

I have been seeing a lot of 20-40k gross annually for str.  But the hoa is pretty brutal on apoartment (450-700 a month).  This is for 2 bed homes in the 350-500k range.  Seems like you really have to dig to find an income property with that hoa.   I wonder if there is a significant price drop in the slow season (non ski season).  

@Kevin Briggs PP was in the $900s. Larger home with 5 bedrooms that sleeps 16 people. Rent is $900+ per night with 2-3 night minimums. Week minimums during the peak times (XMas/New Year's, etc where rent is $1700+ per night.) He also self-manages which saves 40+%. 

Most of the ski weekends this year are spoken for. Summer reservations are starting to come in too. 

@Matt M. That's awesome. Thanks for sharing. Have you looked at any other areas in the mountains like vail/beaver creek or Steamboat? I haven't done as much research as needed at this point, but it seems like STR rates seem slightly better if not the same as summit county, but may be able to find some slightly better prices. Not sure how vacancies compare, though.

@Matt M.  $100k is an incredible number! That’s $273/night at 100% occupancy.  Whatever he is doing, do exactly that.

@Logan McConnell We have a 4 bed 3.5 bath 2600sf townhouse in Steamboat that brings in $55k a year that we manage ourselves. Not only does that save 40%, I believe we also get more reservations. PMs have to fill everyone's pot equally. No HOA. It's in-between downtown and the mountain, so we do as well in the summer as the winter. Falls are also pretty good. Let me know if you start looking at Steamboat and I can get you come contacts.

Originally posted by @Kevin Briggs :

@Matt M. That's awesome. Thanks for sharing. Have you looked at any other areas in the mountains like vail/beaver creek or Steamboat? I haven't done as much research as needed at this point, but it seems like STR rates seem slightly better if not the same as summit county, but may be able to find some slightly better prices. Not sure how vacancies compare, though.

 I've got family up there along with a large development. So that's where I'm looking, however, people have gotten insane with their prices up there. This snow season may bring them back to reality.

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