All Forum Posts by: Michael Glunk

@Adam Farmer

That sounds like a killer deal. Congratulations!

@Katie Lyon

I understand where you are coming from as I was once tied to a 9-5, but reached financial freedom through cash flowing real estate. There are many ways to go about it. I'm an opportunist and chose whatever option(s) looked most appealing at any given time. Meaning I purchased both long term and STRs, but I stuck to a few markets as time is a scarce resource. (Built and BRRRR some properties along the way as well.)

@James Carlson is right and I would second his comment about STR opportunities in the front range. In my opinion STRs will provide the most cashflow and they really aren't as difficult to manage as some think. There are many tools and resources out there to automate everything from messaging, to pricing, etc. I use a few tools and my time commitment to my STRs is minimal.

While I agree that you can go out of state for decent cash flow (this is what I have done in the past from a LTR perspective), you can also find some decent cash flow in Colorado. Not quite as good as say the midwest, but these properties tends to be in Western Colorado. So a reasonable driving distance, but not in you backyard. 

It really comes down to what you want. Are comfortable managing a LTR or STR by yourself? If so go for it! And as previously mentioned, an STR will produce more cash flow. If you aren't, then a good LTR in the midwest with a 10-15% cash on cash return, inclusive of property management fees, is still doable in this market. Set a goal to buy 1+ a year and you will be where you want to be before you know it.

Good Luck!

@Matt Jones I agree with the previous comments that it's not worth waiting if you want to STR. Many areas around the state have been changing their regulations and they usually are not making it any easier to STR. With this said, most will "grandfather in" a property.

Per Teri's comment, part of it is defining what you are looking for in the property and/or location. I've built a few in Grand County near Winter Park that I STR. And there's a strong market in the front range and various other pockets throughout the state, but regulations vary by city/town and county pending where the property is located. Happy to chat.

@Nate Marshall you are correct regarding Grand County's position on STR's. Although with this said, they continually have conversations about STR's. Right now, everything is fairly open in the valley. Pending where you own/buy there are different regulations. e.g. If you are in Winter Park or Fraser town limits they control STR regulations separate from the County. I own STRs in Fraser and they have been easy to deal with. Your point about getting "grandfathered" in is a good one as well. While not a guarantee, most towns/counties when changing STR regulation tend to allow current STRs to maintain their status.

As with any market, if you are looking to purchase an STR you need to consider multiple factors during your evaluation. (I'm sure you know this Nate, but for other readers...) One that is often overlooked is competition. Certain sized properties in certain locations do better (or worse) in Grand County. Often caused by an over-saturation of a particular property size with respect to demand. Something to consider regardless of market.

@Frank Konsella Welcome to BP. We've actually connected previously on a few properties in CB that I was looking at from an investment perspective. Anyway, happy to offer any help or advice. I think Gunnison is a decent area as you know, but right now the cash flows aren't that strong given the shift in the market. Rust Belt or South isn't a bad place to start and can be an easy first step. Let me know if you ever want to connect.

Best,

Michael

@Nicholas Libertin Yes it is doable, but with that said it is somewhat of a general response as there are other factors at play. Location being a key factor. Are we talking Evergreen vs Grand County. Both are doable but as an example a 3/2 single family in Winter Park (Grand County) is kind of out of the question. But still close in outside of Winter Park is doable. Happy to discuss more details.

@Nicholas Libertin I think the Western Region of the US has potential. But of course it's all relative. From a Colorado ski resort area, I think the Winter Park area has room to grow. It's totally exploded, but there are opportunities in the niches. I built two homes and just started STRing the larger one last December. It's worked out fantastic. But of course there's some COVID Effect there. Building there now, as in most places is difficult because of labor, but still possible. I could write an essay on more details, but won't for the sake of this post. Reach out if you want more details on Grand County.

I live in Evergreen. To @Chantal Duame 's point, it can be a good area. You just need to do your research. Evergreen is in two different counties. The bulk of it is in Jefferson County which requires a minimum of 1 acre to STR a property at the moment. If you go to the Clear Creek side, the regulation is relaxed to/non-existant. Evergreen is 50 mins from the Airport (Not during rush hour.) 1 hour to Winter Park, approx 45 mins to A-Basin, closer to Loveland. Breck, Keystone, Vail, etc. are in the mix drive wise as well if you go midweek. Weekends, you might as well stay on the mountain because traffic is horrible.

@Kevin Scott It really comes down to the market and the competition. 

#1: What types of people are visiting that area? I'm not as keyed in on Conesus Lake, but more Seneca, Cayuga, Skaneateles where you have a draw of the towns/vineyards that can draw a diverse group of version sizes from families (or multiple families) to couples. What types of people/groups are visiting Conesus? Party size? What features are they looking for? etc. How well is the current market of STRs meeting those groups needs?

#2: Then it also comes down to the competition. I recently built two homes in the Winter Park Colorado area. I short term rent the larger home (6 bed / sleeps 15) and it does well. The smaller place (3 bed) I long term rent as the competition is pretty tight in this size and the extra effort it takes to STR the property to date hasn't been worth it. So I long term rent it.

So what is the competition like? Are many of the STRs of a similar size? What is the occupancy rate of those similar sized STRs? (e.g. is the market saturated in that size and therefore occupancy is week or rates are low? or is there room for more?) These are the questions I'd be looking to answer.

On a side note, I am looking into STRs on the previously mentioned finger lakes, happy to connect directly if you want to kick around any thoughts or ideas.

Michael

@Alecia Loveless

Yes! That’s similar to what I was thinking. Glad to hear someone else was doing it. And finding success. The definition seems to be “one free meal that isn’t part of the rate”.  So trying to play in the rules so it’s called a Bed and Breakfast. Since AirBnBs aren’t allowed. Seems to be semantics. 

@James Carlson It might be dated by now but any chance you can send me that Morrison ordinance and info you tracked down?