Breckenridge, CO BRRR Resort Mountain Town Remodel 1031 Exchange

Here's the fixer upper we 1031 exchanged into after flipping another condo in Breckenridge last year. Thank you Dave Foster and the crew at ERG for facilitating the 1031 exchange!

3bed/2bath townhouse style condo in the heart of downtown Breckenridge, an awesome mountain town in Colorado's Rocky Mountains. If you haven't heard of or been to Breck before, check out their website and book a trip!

Seller had three offers day 1 on MLS. We saw the potential and timing was right. Lots of natural light, patio with mountain views, end unit, parking, hiking and biking trails steps from the door, and walking distance to everything in Breck.

Asking price $445k

Sold price $452k (escalation clause to beat other offers)

Since the property was in such bad shape with only subfloor, a hole in the ceiling from removing a fireplace stack, no countertops, unfinished drywall over masonry block, boiler and electrical panel that need to be moved and updated, the appraisal came in at a C5. The seller refused to do anything and I ended up spending a weekend fixing the place up before we owned it. I reinforced and patched the hole in the ceiling, finished the drywall, installed a countertop and sink and cleaned the mess up so that it would appraise at C4, the minimum for lending. 

Remodel ~$85k

-All new electrical in the kitchen, including new electrical panel

-Installed high efficiency boiler and new plumbing to kitchen and upstairs bathroom

-Added washer/dryer to upstairs bathroom

-100% kitchen remodel

-Installed loft with steel beams above kitchen

-Custom steel cable railing by stairs and handrail that doubles as ladder to the loft

-Vinyl laminate throughout

-Replaced hollow doors and frames with solid doors

-Removed popcorn ceilings, added light texture

Within six months of our closing, another two units, of 12 in the complex, hit the market. One sold for $540k, in need of a remodel. The other with a somewhat dated remodel sold for $675k.

We planned on cash out refinancing to complete the BRRR strategy and pay off our HELOC that we used to fund the remodel. After listening to Dave Ramsey's "Total Money Makeover," while I do not agree with never having debt, we are leaning towards strapping down and trying to pay off the HELOC and keep the low rate of 4.375%, 30yr fixed.

PITI + HOA = $2100/month

Long Term Rental = $2850/month

Summit County is expensive and we're interested in other markets for our next deal. We always want to buy where we think we could live for a while. Buena Vista or Salida, CO? Or should we look out of state for better returns? 

If anyone is interested in discussing anything real estate related on the hiking and biking trails, on the ski slopes or happy hour on the deck, send me a message!