Condo buy & hold investment.
Purchase price: $275,000
Cash invested: $10,000
This is a one bedroom condo that I started off living in and now long term rent. Will switch it to a STR when these great tenants decide to move out.
What made you interested in investing in this type of deal?
The property has floor to ceiling south facing windows that look right out over the national forest. The location has access to 7 of the top nations ski resort all within a 45 minute drive.
How did you find this deal and how did you negotiate it?
I am a real estate agent and had an agent present in my office.
How did you finance this deal?
5% down 30 year conventional loan.
Nice! I am actually looking for a vacation place like that. What town is your condo in. Thanks!
Hey Damaso! My property is located in Silverthorne, Colorado. There are certainly many condos that have a location like mine, depending on your price point. Have you ever been to the Colorado mountains during winter or summer?
I have only been there in the Summer but after reading your thread I am going to give the Rockies are hard look now.
@Michael Healy did you find it hard to get comfortable with inflated $/sqft? As someone in Denver who keeps my eyes open to the mountains, I continue to see this number climb higher and higher making it more difficult to realize proper cash flows - especially once hefty mountain HOAs get factored in. Any resource you used to better understand the STR vacancy rates?
@Damaso Bautista I am an agent in the Colorado Mountains and work predominantly with investors. Let me know if you'd like some incite to the mountain market here in Colorado. Summers are pretty phenomenal, but it's the winter that keeps prices appreciating and rental income strong.
@Austin Barry Summit County's $/sq ft is much more affordable than the Vail/Beaver Creek/Carbondale/Aspen area. Those markets have shown the upward potential to truly still be had in the Summit County area. I've been investing in Summit County myself for the last 7 years and know the numbers pretty well. I work closely with management companies who can run the data, but AirDNA also does the trick if you know the market well enough. Average rental days with a management company is about 160 days per year. My clients who manage the property themselves tend to enter into the low 200 days per year and that has them cash flowing a bit while capturing the appreciation of roughly 10%+ that we've seen every year for the past 10 years. Working with management companies is tough, but if you manage it yourself you just need to know where to look. HOA's are steeper the closer you get to the resorts, but also include most of your utilities built in. Silverthorne and Keystone have some of the greatest appreciation to be had over the next 5 years with the development going on to expand those areas. If you have more questions feel free to reach out to me.
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