Out of State - Ski Property - Short Term Rental

[Jon Steffen]

Good Day,

I've been looking into purchasing a ski house or condo that I would rent out for the popular seasons, in a popular ski area in Colorado (Avon, Aspen area, Breckenridge etc). I live abroad in Bermuda and I'm currently unable to buy property there due to restrictions and transaction taxes. Given that we like skiing as a family activity and wouldn't mind moving to Colorado at some point this seemed like a potential option.

Where I'm struggling on this is that it seems that the economics don't really make sense given property prices, mortgage rates, and occupancy. Cap rates seem pretty low relative to mortgage interest rates.

Has anyone seen this model work in this economic environment?

Thanks for your thoughts on this.

Jon