Anyone finding deals on mtr props in Denver?

Question

I’m interested in joining the mtr space in the Denver metro area, particularly looking at  buying 1-2 br properties hospitals, but it seems like everything is running cash flow negative. Anyone else experiencing this or any advice on where returns might be better?

James Carlson · Answer

@Neena Sat

My two cents from the Colorado STR world ...

I think mid-term rentals are just a step or two behind the STR trajectory.

What I mean by that is that short-term rentals had the so-called "Airbnb Bust" a few years ago, largely fueled by a spike in supply with everyone working from home and buying properties out of state.

That supply pushed prices down, and you're seeing the results in the last year with lots of STR investors (both here in Colorado and elsewhere) either selling or moving into MTRs.

Now MTRs are seeing a supply glut, in my opinion. This will balance out at some point in the next year or so but for now .... ??

Well, your eyes don't deceive you. Making the numbers on medium-term rentals is tough. In Denver, in Colorado Springs, most anywhere. Still somewhat true for STRs, too. The only investor clients I see kill it on Airbnb are the ones that go above and beyond with design/furnishings, amenities and amazing photos.

So, either be okay breaking even or a little less while the market corrects or wait for a bit.