I am looking at buying a high end property, but can't do it unless I can figure out how to get it to cash flow. I want to buy it because it is an incredible deal on 1200 contiguous acres of mountain property, with unbelievable natural resources, that I would personally love to figure out how to own and hold for the duration.

I can get the property for somewhere in the neighborhood of $1.3M. It has a big, gorgeous "main" house (4+ beds and 3 baths) on it that the owner built for probably about $2M. It also has a gorgeous efficiency apartment above a garage, and another 2bed house on it. All are remote, impeccable, very high end. I am uniquely suited to own the property and would dearly love to do so. (Which is to say that I have an emotional investment in trying to make this work, and am trying to be very clear headed about that fact.)

The houses could easily be used for vacation rentals, weddings, corporate retreats, yoga retreats, meditation retreats, etc. But it is far from the nearest urban area, and so I feel like feeling the vacancies-- especially in the first couple of years-- would be fairly difficult. I am trying to think out side the box about how I could utilize the amazing houses as a retreat center of some sort, and am struggling to figure out how I could systematize the rental of this "retreat facility" such that it could actually cash flow reliably.

The houses could easily make an wonderful B&B, but I have zero desire to run a B&B.

The property is nicely located near a national park with few amenities and not enough campgrounds, but otherwise is a very remote location. I have contemplated putting in a small RV park (40-ish spots), but am a bit wary of the massive amount of ongoing work to manage / maintain such a facility, which I would have to hire someone else to do. The campground could be fairly primitive, (which is customary around here in CO), and I expect that occupancy would be very high all summer due to the nearby national park, bike riders, baggers of 14 foot peaks, climbers, ice climbers, etc.

I could not possibly afford to own the property unless it could cash flow about $6-$7K per month after the first couple of years. I am looking to hold it for its appreciation, and to preserve an incredible piece of property, and I am looking for long term cash flow. The population of CO is exploding, and I don't know if I will ever get an opportunity to buy such an amazing property again.

Just wondering if anyone has any other ideas to throw around. Thanks!

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Matt Vogt

Investor
LaGrange GA

Matt Vogt

Investor
LaGrange GA

Replied over 8 years ago

Do you have rentals currently or other significant assets to acquire it? even for a 5% conventional, you'd be looking at a $215K down + Closing costs. I also imagine that if someone had 6 or 7K/mo to rent a place, they would probably just buy the property. Seems like a HUGE risk if you cannot afford this property on your own. Maybe pool a bunch of people together to buy a stake in it, then rent it out as a weekend rental, wedding reception etc as planned. If you go that route, make sure your friends are affluent so that you can all stomach a vacancy for a few months (or year etc) along with the repairs and maintenance a property of that size will take.

Good luck, my gut says avoid this one.

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Thomas S.

#2 General Landlording & Rental Properties Contributor

Thomas S.

#2 General Landlording & Rental Properties Contributor

Replied over 8 years ago

The only possible way you could ever make it work would be for you to live in it and operate one of the businesses you have suggested. There is no way on gods green earth you will ever make a high end property even come close to positive unless you are prepared to put in many long days operating a business.

Let the fantasy go. There are no realistic options.

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