For Sale Soon: STR Renovation in Steamboat Springs Success Story

[Jake Cohen]

Investment Info:

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

Purchase price: $475,000
Cash invested: $377,000

This was my first foray into Short Term Rentals 4 years ago. I bought an aging duplex in Steamboat Springs. 2/1 upstairs, 1/1 down. It needed a ton of work and each time I thought we had a full scope, another project would be added on. We spent more than we intended on the renovation, but it turned out great. It has been grossing approx. 90K per year for the past 3 years. I now know so much more about the STR game and am putting this beauty on the market to transition into a larger property.

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

I was in the hospitality industry early in my career and felt I knew what people wanted when they went on vacation. Also afforded us a place to visit in Steamboat when we wanted to go on Vacation.

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

On the MLS. It was a struggle as the owner thought it was worth more. We went back and forth on some structural issues that were very obvious. It needed a full rehab and got it.

How did you finance this deal?

Traditional Financing. We funded the deal from the sale of another property. The renovation was cash out of pocket.

How did you add value to the deal?

We pretty much changed everything in this property except the exterior structure.

What was the outcome?

We have had a great run with this property and are putting it on the market in March 2021. We have 2 more kids now than when we bought the place. We look forward to finding another property that needs our attention and will be a better fit for our family.

Lessons learned? Challenges?

Wow, too many lessons to list. We learned a lot about renovations. I tried to push to have it done by Christmas which didn't happen. Our contractor took advantage of how much we wanted to speed up the process to upcharge.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Adrienne Strook in Steamboat has been my agent ever since. Highly recommend!