Tiniest Condo in a Great Location

[Lucas Milburn]

Investment Info:

Single-family residence buy & hold investment in Breckenridge.

Purchase price: $62,395
Cash invested: $3,000

Ski-In Condo in Breckenridge Colorado.

What made you interested in investing in this type of deal?

I am an avad Snowboarder and rented a room in Colorado for years and was always on the look out for a property I could afford in an ideal area. I was looking for something that could make money as a vacation rental and allow me to enjoy it as well.

How did you find this deal and how did you negotiate it?

Found it on Zillow the first day it posted. I figured based on how tiny this place was that it couldn't be a primary home and so I guessed that they rented it out and looked on VRBO. It didn't take long for me to find what looked to be it. I reached out to them and mentioned that I saw a listing on Zillow and wondered on if they were selling? They said yes and I established a rapport and explained about me and asked if she would negotiate over the phone and secured a purchase price.

How did you finance this deal?

I paid cash.

How did you add value to the deal?

I sought out a direct line of communication to the buyer to negotiate the price without realtors in the way. We did buy and sell thru the realtor but speaking directly with the seller was ideal.

What was the outcome?

May go down as my best returning investment. The property in its 5th year will have paid my purchase price back and will continue to produce around $1000 fcf a month. Additionally I am trying to leverage the new value (3x) and borrow against it with a line of credit more than double my purchase price to fund additional deals.

Lessons learned? Challenges?

Jumping on a deal and seeking a direct line of communication to the seller helped me secure this property. It was out of state and with as small as it was I took a gamble and did not step foot in it until i owned it, but I had the local realtor go thru and do a video and a basic eye ball inspection and felt confident. I was worried about the purchase price because the seller bought the property for 1/3 of the price only a few years prior but 5 years later it has tripled in value.