We had previously done a short-term rental condo in Granby, CO. That property exceeded my expectations and made me want to do another short-term rental in Colorado.

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

I was casually browsing homes on Zillow one night, and I plugged in a search for A-Frame Cabins. I've always wanted an A-Frame cabin, and I was intrigued to see what was on the market. This one popped up, and it looked good. We went in to a multiple offer situation. While we weren't the highest and best, we offered to pay cash, we waived inspection contingencies, and we offered $2K in non-refundable EMD if the seller accepted our offer by midnight that day.

How did you finance this deal?

We paid "cash". We have a first lien HELOC on our primary residence, and we used the HELOC to pay "cash" for the cabin.

How did you add value to the deal?

Immediately after closing, there were several repairs that needed to be done including a new water heater, new roof, and gutters. While these items don't necessarily add value to a home, they were needed to ensure a safe & sound property for future guests. From there, my wife started browsing at furniture on nextdoor, facebook, and craigslist. Most everything we found was free and we probably spent less than $1,000 on furnishings and decor for the entire home.

What was the outcome?

We just started advertising the property through Evolve vacation rental in early September. So far, the property seems to be performing well and we have bookings coming in. We only have two reviews so far, but both have been positive. The area really is great and we believe this will be a great vacation rental for years to come.

Lessons learned? Challenges?

Coming off the heels of COVID, there were definitely material shortages, shipping delays, and contractor delays. The project took me about 2 months longer to advertise than I had originally expected. I also learned that we probably should not have waived our inspection contingency due to the extensive work this property needs. Over the long-term, the performance of the property should balance out the challenges we faced, but some additional repairs impacted our ROI.

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

Yes. I worked with the Bring Home Denver team at Keller Williams. They were exceptional as always, and helped us secure the contract in a highly competitive real estate environment.