Angel Fire, New Mexico?

Question

Does anyone have any thoughts on the STR market in Angel Fire, NM (or Taos or Red River in that area)? I'm in Central Texas and am looking for a STR destination that could be used for a few days (or a week) once or twice each year by my family, while still cash flowing very well as a STR. That area is one that has occurred to me that appeals for personal reasons (distance, location, climate), and it appears much cheaper to purchase than the ski towns I looked at in Colorado. Does anyone have any experience in this area, reasons I should (or should not) purchase in this area, or any alternatives in that part of the country that might be better for what I'm looking for? Or, and this is an alternative question, is there any place in the country that cash flows better as a STR than any other area? I know a lot of people like investing in the Gatlinburg/Pigeon Forge area, and haven't ruled that out, although it's a further drive from where I'm at.

Aaron Borrego · Answer

Hello, I have been purchasing some real estate lately in Angel Fire. Right now rentals seem to be doing very well and you can get a nice property in the 500k range. What interested me the most about Angel Fire was that it doesn't turn into a ghost town after the skiing ends. The resort has a world class downhill mountain bike area that stays very busy all summer as well as a great golf course too. Within 12 miles there is also a lake in Eagle Nest for fishing and no wake boating. The combination of all of these help to insure the short term rentals stay reasonably booked.

If you're looking for a broker to send you any property info shoot me a message and we can connect.
Thanks!

If you're looking for a broker to send you any property info shoot me a message and we can connect. Thanks!

Zach Edelman · Answer

I don't but I just did an acquisition there for a client of mine and the AirDNA projections looked strong tbh. There's probably been a lot of comps that have emerged since this post.

Troy Jaster · Answer

Aaron - I am in the process right now of trying to work out a deal on a STR in Angel Fire. We took a family trip there about a month ago and I was chatting a bunch with the owner. I finally just said, "Do you have any desire to sell this place?" and she said, "Yes." We haven't worked out any details yet because she's still trying to figure a few things out. However, I've been in touch with a fantastic Realtor there who's given me a ton of insight on the local STR market.

I'm in San Antonio and would probably visit 2-4x per year, in person, and rely on renting it out for the remainder of the year. I'm happy to jump on the phone with you and share notes! I'll shoot you my info in a DM.

Justin Anderson · Answer

I've yet to find a ski town that'll be cash flow positive.  1M in Breck will get me 80k in bookings while 1M in Pigeon Forge will get me 140-160k+.  Being truly year round really helps PF and places like it.  I bought my first cabin in PF simply because I could take the profits from that to pay for my yearly ski trips and still come out ahead.The ski towns can come out ahead if you figure in appreciation, though.  But I'm more of a cash flow guy preferring the reliable base hits to home runs, but that's just me.

Jonathan Stone · Answer

@Rohin Dhar

Love the idea of an earth ship as an STR. I would guess the overhead costs are pretty low as well.

Ryan Billups · Answer

Hey Troy, I would love to hear an update on your STR experience in Angel Fire. Did you end up purchasing the property? Do you mind me asking what realtor you worked with? I am looking for a realtor with STR knowledge and local experience. Any insight is greatly appreciated!

Collin Hays · Answer

Well, it would be way down on my list of prospects for sure.  I am sure there have to be folks that it is working for.  There’s just a lot of lower-hanging fruit out there in my opinion.  I have looked at a lot of ski areas and I can’t make the numbers work well.  I’ve also had the same experience with Cape Cod.  I would love to invest in that market, but the numbers don’t work.  You have a 13 week season there and that’s it.

Aaron Henricksen · Answer

@Collin H. Thanks again for the info. So it seems like you’re not very optimistic about the prospects of STR in any of the ski areas, including Taos and Red River? Or, it’s mostly Angel Fire specific?

Collin Hays · Answer

Aaron, of the owners I know, none use their homes as rentals.  I have a friend moving there in May.  Of the folks I know who own / have owned there, they use the house a lot the first couple of years, then they don’t go any more because there’s just not much to do there. The restaurant scene is sparse, so you have to drive to Red River or Taos to eat something decent.  Those are 45 minutes to an hour away.

On the rare occasion that I go to angel fire, I stay at the lodge there for less than 100 bucks usually.  It’s mostly vacant during fly fishing season.

I am only 5 hours away from that entire area, but I’ve never considered it for STRs.  I can’t make the numbers work.  And that actually goes for most ski-oriented areas.

Aaron Henricksen · Answer

@Collin H. Thanks for the feedback. Do any of your friends with property in Angel Fire use their properties as STRs? If so, do you know what their experience has been. And, is there anywhere else in the region that you would recommend for a STR?

Angel Fire, New Mexico?

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