Who does STR in the Mountains?

Question

Hey everyone! I'm wondering if there are many people out there who do airbnb arbitrage in the mountains and at ski resorts? The inventory for rentals up there seem to be low but the nightly rates look awesome and I bet you you would make great money! I'm talking about towns such as Kimberley, Fernie, Golden, Canmore, Nelson, Revelstoke. I'd love to hear what's been working with airbnb properties out here and what has not been working.

John Carbone · Answer

Another thing with doing this model, let’s say you get your lease and you do very well. An owner can follow to see how well you are doing and then either A) raise your rent price for the next lease or B) not allow you to re-lease and then they decide to do it themselves after seeing it was a success. I really only see downsides with this.

John Carbone · Answer

I don’t really see the point of arbitrage. The tax benefits and appreciation of owning far outweigh going for arbitrage.

Erik Stenbakken · Answer

Mine are generally doing well. Different markets are performing differently, as are size of properties. Last year my 2/2 in the Smokys was AMAZING grossing over $100k. This year? Only $49k so far. But the larger properties are performing at about 95% of last year (I have a 5/5 and 6/5).

Good areas… all depends on your appetite, goals, and skillset. Live near the Poconos and are handy? Prices are falling there *daily* and you could do well. I hear Big Bear is falling in price too. Cash up. Run LOTS of numbers (that is, practice) and you'll know a good deal when you see it. Nobody can/ will tell you because A) they'll buy it first, B) they don't know, or C) it may be a good deal for YOU, but not them, therefore they don't think of it as a deal. Define your "buy box" and start drilling down. Best of luck! (but it's more homework than luck making this happen)

Wilson Hunter · Answer

If you essentially want a job managing Airbnbs instead of investing in short term rental real estate, then I'd say the "co-hosting" model of that dude in the other thread is a good way to go for mountain vacation markets. I feel like it would be difficult to convince owners of a good mountain vacation home property to sign a longterm lease with you so that you can short term rent their property.

John Underwood · Answer

The Mountains yes, Arbitrage No.

Erik Stenbakken · Answer

I have several SFH STRs in Colorado -- intentionally NOT in ski towns and not condos. If you're looking at condos… do the math on HOA bills. Those can be total deal killers. Remember, skiing (and its income) is seasonal, most HOA dues are *not* seasonal. Here, it's not uncommon to have dues run $900/month year round. Plus taxes. Plus operating expenses. Personally, I don't do arbitrage as I don't see the long-range value (you miss appreciation, tax benefits).

Run your numbers carefully. I've looked at many properties where the seller (or landlord in your case) just "forgot" to include the HOA bill in their P&L. There's some sloppy business out there. Don't be a victim of it. Good luck!

Lane C. · Answer

@Erik Stenbakken how are your returns on your properties? Any suggestions on good areas to invest in

Wilson Hunter · Answer

Yeah I buy properties and rent them out as short term (nightly) rentals.

Jack Bouvier · Answer

That's a very good point. Do you typically try to find a property to buy and then rent it out versus doing a long term lease?

Who does STR in the Mountains?

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