Castle Rock- highest best use for House with View STR?

[Michael C.]

Hello all, 

I am trying to figure out if this custom home on the hill in Castle Rock Co is a good investment. 
The best strategy I see for it is as a Luxury STR, I'm just not sure the market supports this.
It is a newer hill top build in an older neighborhood with a 500-700k price range. Looking at local STR listings most are $250-400 a night around castle rock. 

It is a 4bed 3bath 3200sqft $1.2m custom home

Benefits- no HOA or rules restricting STR

-1mile (walkable) from historic downtown or from the Rock park

-house has nice views and is pretty secluded from neighbors and feels private
-assumable loan with much lower than market payment

Draw backs- high price -no comps, new house in older neighborhood. High price per square foot.
-interior floor plan not ideal for raising a family but looks ok for STR. More of an entertainment set up.

-yard not ideal -driveway is steep, not a lot of off street parking, back yard is a rocky hill

I think I would need $500-650 per night for it to work for STR or LTR of $6,500+.

Anyone have any insight or ideas for this property?

Thanks Mike.

https://redf.in/2SaOAV

[Peter Hu]

Hey Michael,

This is certainly a big swing.  Do you have access to the paid version of airdna to find comparable properties that are cash flowing at 500-650 a night?  If not, It's possible for you the create the market with the best luxury experience in Castle Rock, but obviously a little risky.  Let me know if you want to poke around with our airdna account!