All Forum Posts by: 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.

Hey Chicago investors,

I've been digging through the inventory for clients focused on the short-term rental (STR) and Airbnb space. As many of you know, finding a condo building that permits short-term rentals in Chicago is extremely challenging due to HOA and city restrictions.

I just pulled data on a handful of active condo listings where the buildings explicitly allow short-term/Airbnb rentals. These are rare opportunities and worth investigating if you're looking for cash-flowing assets:

If you're an investor trying to navigate Chicago's complex STR landscape and are looking to add an approved unit to your portfolio, feel free to connect! I specialize in identifying and closing on investment properties that meet these specific rental guidelines.

Happy investing!

Dan Bourdeau
Short-Term Rental Focused Real Estate Agent
Sarita Sells Team

Kale Realty

Hey Shaun! Another great meetup in town is the 'Keeping it Real Estate Meetup' - second tuesday of every month at Navigator taproom. A lot of MFH focused investors in the Chicago area.

Awesome post and graph. I share the sentiment - when I started seeing Gatlinburg show up on the 'best places to invest' chart in 2022-2023, I knew it was going to lead to an oversaturation. I've largely told investors to stay away - too make investors normalizes and hurts any potential returns there. 

It'll be really interesting to see the correction there take place - I think you are spot on in where in the cycle we are at. I'd say we are entering a lot healthier time to be in STR than the boom and bust of the last few years.

@Everton Souza

Welcome to Chicago!

We have a ton of Real Estate Meetups you should think about attending (Chicago MFH Investors Club. I'm always up to connect with fellow Chicago investors as well, so feel free to reach out!

@Boris Le

Chicago is tough to make it work from a cashflow perspective. A lot of buyers are in it for the appreciation (Chicago should continue to appreciate around 5% this year) rather than cashflow.

IMO, there are limited ways to Cashflow in Chicago. Investors often make it work by doing a 'house hack' where they live in one units and LTR or STR the other half. Being creative like that is how I make the numbers work - with my in-law unit covering most of my mortgage on the whole building.

@Amy Martin Yes, the address on your ID needs to match the unit address (and unit number) if you are applying to a owner-occupied license. I have met plenty of people that 'fake' this, but I think its best to play by the rules to avoid losing a license. 

Chicago can definitely work for STRs, but its highly regulated and as such you need to play within the rules. I've met 100s of STR hosts in Chicago that make it work (myself one of them). The fact that there's stricter regulations just means that less investors are rushing in, and those that remain keep more of the pie.

@Tenzapa Wakombe @Greg Janes 

Seasonality definitely is significant in Chicago. May-September are prime booking months, and outside it of that its really just weekend travelers. Still, I'm not afraid of the seasonality since the summer booking window can make enough to have it make sense. 

@Amy Martin I'm an owner occupant in Chicago in a SFH with an in-law suite - it goes really well for me! Feel free to reach out if you have more questions