Custom Colorado A Frame Build

[Daniel Bourdeau]

Investment Info:

Single-family residence Short-Term Rental in Crestone.

https://www.airbnb.com/rooms/1282207374918563626

Build Cost: $550,000

Luxury, newly built A-frame short-term rental in Crestone, CO, near Great Sand Dunes National Park (≈1 hr). The property consists of 4 beds/2 baths across a main and mini A-frame, accommodating up to 9 guests. It's a high-end experience featuring a private hot tub with mountain views, high-speed SpaceX Starlink Wi-Fi, a custom UFO Playscape, and EV charging. The home is designed to attract luxury families and remote workers seeking a premium mountain getaway year-round

What made you interested in investing in this type of deal?

I saw a clear supply/demand imbalance. Visitation to the nearby National Park doubled in 10 years, yet luxury rental unit growth lagged significantly. The unique A-frame and premium amenities (hot tub, Starlink) allowed me to enter the under-served luxury market. This provided a competitive edge and justified a high ADR, maximizing returns in a high-growth recreational area

How did you find this deal and how did you negotiate it?

I found the deal due to my local expertise, having lived in Colorado and become an expert on the area's real estate potential. Knowing the luxury supply gap, I was positioned to act fast. I negotiated the land purchase directly, leveraging my local insight. The entire project was developed as a group investment based on my design

How did you finance this deal?

The land was purchased outright in cash. The development costs for building the A-frame were covered by a Promissory Note from one of the private investors. We intend to operate the property for one year to establish a strong income track record, and then use that performance data to refinance the deal with a traditional commercial lender

How did you add value to the deal?

I provided the maximum value by designing the entire A-frame and playscape myself, ensuring every feature was optimized for the luxury STR market. This included custom architectural features, installing the premium hot tub and Starlink internet, and outfitting the unit to maximize guest capacity and appeal. This custom build significantly boosts long-term asset value.

What was the outcome?

The property achieved an excellent outcome, consistently surpassing initial Pro Forma projections with occupancy rates of 80%+ during peak seasons. The high Average Daily Rate (ADR) secured by the luxury amenities and strong branding resulted in a robust cash-on-cash return exceeding 15% within the first year of operation. This successful performance validates the strategy of investing in high-quality, amenity-rich properties in prime recreational locations.

Lessons learned? Challenges?

Lesson: Premium amenities (hot tub, Starlink) provide the highest ROI for STRs. Primary Challenges: Remote management required establishing redundant, reliable local service teams (cleaning, maintenance). We also learned to proactively over-communicate the necessity of AWD vehicles during snowy months to ensure smooth guest access and satisfaction, minimizing logistical issues and potential poor reviews.