My Vacation Rental in Grand Lake, CO

[Parker F.]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $313,500
Cash invested: $45,000

Vacation Rental Duplex in Grand Lake, CO

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

We wanted a place we could stay when we go to the mountains and wanted guests to pay the mortgage.

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

MLS

How did you finance this deal?

10% down Conventional mortgage @ 4%

How did you add value to the deal?

New roof
Restored exterior of the cabin
Remodeled bathrooms
New appliances
New granite countertops
Brought natural gas to the property
Installed Central Heat
Converted spare space to a second rental unit!

What was the outcome?

I'm able to pay all my debt service ($1775/month) and am cashflowing $1650

Lessons learned? Challenges?

Service providers are less reliable and more expensive in the mountains
Don't ask anyone to do work for you during Elk season!
Having a good cleaning crew is the most important part of a vacation rental business. Without it, you're dead in the water.