STR Flips - Thoughts?

[Jamie Salyer]

Hello BP'ers-

I would love your thoughts!

I am a real estate broker living in a resort mountain valley in Colorado (Vail). It is an interesting place for flips because prices are super high but often buyers (second home owners) do want want to remodel a home. They are turned off by the high construction costs but primarily, they just want to enjoy their vacations and not do a remodel. Often times an outdated condo will sit on the market... which is in direct contrast to Denver, where outdated homes are often quickly eaten up by investors. 

My overall plan is to flip for the next year or two before I start holding (brrrrr'ing) to increase my cash situation. I'm liking the idea of buying an outdated condo, fully furnishing it (down to the silverware) and selling it to second home owners who very often rent them out.  I don't necessarily consider them Investors, like on BP, because typically they are just wanting to re-coup some money on their dream vacation home during the months that they aren't in town.

Any thoughts from STR peeps? Or general thoughts at all?

I've been in real estate for a very long time but I'm just dove into investing about a year ago. One under my belt. 

[Evan Polaski]

@Jamie Salyer, I think there is certainly a market for this for all the reasons you mentioned. This is synonymous with the turnkey providers, but obviously with specific additional needs. Where I would see this being most beneficial is not only buying, renovating, furnishing, etc, but then also starting to operate as a STR to show perspective buyers what their income can be by continuing to rent when not using. And from a "increase your cash situation" you could be the manager after sale, so you can not only profit on the sale, but retain cash flow from managing the STR as well.

Many resort towns have agencies like this.  I was in South Haven, MI last summer, and the vacation rental providers were all agencies too that managed the rentals, as well as listed for sale.