All Forum Posts by: Derek Morris
Derek Morris has started 1 posts and replied 4 times.
Post: Looking for Guidance when purchasing a home in between Lake Granby and Alma Colorado
- Posts 4
- Votes 7
Quote from @James Carlson:
I've always been surprised when looking at markets for my STR investors that Granby (and Winter Park and Fraser, etc.) don't do better. Their prices aren't much lower than other mountain or ski areas but their revenues don't match.
But in your situation, if I had to rank buying in a place that allowed STRs and buying in a place that had slightly better numbers but was less secure regulation-wise, I'd opt for the former. If this is going to be your retirement place, it has significant meaning, then that matters most to me.
And the areas you're looking at do work in terms of laws. Grand County and Lake Granby both allow for non-owner occupied short-term rentals. And that is increasingly rare for Colorado cities/counties. Gilpin, Clear Creek, Summit, Routt (Steamboat Springs) all either don't allow them or are way over their caps.
Oh, and the actual town of Estes Park has a cap on the number they allow, but on the rare occasion, a property will come up that has an active STR license, and Estes is one of the rare cities to allow existing license holders to transfer the license to a new owner. (With most cities, the license is for the owner, not the property and is forfeited upon sale.)
Alma is likely better in terms of numbers. You're as close to Breckenridge as you can but still be in Park County, which currently allows for STRs. (Though Park is also looking at regulations.)
I'd get with a good agent who follows STRs and Airbnb rules. (Subtle self-promotion there.) And good luck! Buying a vacation home is a little scary but also very exciting.
Post: Looking for Guidance when purchasing a home in between Lake Granby and Alma Colorado
- Posts 4
- Votes 7
Thanks for the detailed response, Kristine. I hear ya! My feelings for the area need to be separated from the business moves that need to take place. I am coming across some properties that are disclosing str revenue numbers for the prior year. Thats helpful information regarding established systems and processes, permitting etc. I do like your advice on patience for appreciation as this is something my wife and I have discussed. Those numbers make sense in the long term. If possible, I'd like to stay connected with you as our journey develops. We have strong desire to call that area our home once my wife retires from the military but are gearing up to take advantage of opportunities that come up before then.
Post: Looking for Guidance when purchasing a home in between Lake Granby and Alma Colorado
- Posts 4
- Votes 7
Good afternoon, everyone!
I'd like to hear your opinions on the areas of Lake Granby down to Alma Colorado. My wife and I are looking for a vacation home that could also generate revenue to help cover expenses. Profit looks tough to comes across. We were married in Estes Park, so the area has significant meaning to use and will be our retirement location.
My issue is that when looking at the numbers strictly for an investment property, they don't add up as a smart business move.
Any advice on good areas to live, deals, specific times of year to purchase, what to avoid is greatly appreciated as I think my desire for the area may be outweighing what the numbers are telling me. Thanks in advance!
Derek
Post: Is anyone still expanding the portfolio of STRs?
- Posts 4
- Votes 7
Quote from @Collin Hays:
In the Smokies, there are far more sellers of STRs than buyers. I suspect this is the case throughout the country.
I am always a buyer if the deal is right. A couple of my all-time best deals were bought in precisely the peak of the overall market. The moral to that story is, you are only looking for one deal. I tend to get myself in trouble when I go searching for deals - stretching proformas, trying to force something, etc. It's like waking up one day and deciding "Gee, I think I'll invest in the stock market today."
If you stay watchful and ready, the good deals will come to you. Anxiousness leading to a bad deal can really set your financial future back.
I'm new to the investing world but have been active in residential sales in North Carolina for the past 2 years. When you said "Anxiousness leading to a bad deal" I felt like that describes me when looking at properties for STR goals. I find myself falling into that trap. Thanks for pointing that out!