All Forum Posts by: Candice De

Make sure to review the local regulations so that you don’t get hit with unintended consequences. This sounds like it would act more like a LT lease, so less risky. I have a colleague who is having to pay commercial taxes because of the way his ski share lease was written. Happy to chat more about mountain town investments!

@Jake Sklanka the latest proposal from Summit County is actually pretty impressive from my opinion.  They are allowing "Resort Zones" to operate as is, but they are proposing different levels of licensure for "Neighborhood Zones."  They are tiered based on the type of ownership and the number of days you rent, but they are still allowing the owners in these zones to have rental options at reduced occupancy (still 2 per BR plus 2 instead of plus 4).  They are allowing existing licenses to grandfather in, potentially for 2 years.  I think this is a great approach that accommodates existing owners and gives more control to future demand.  Thoughts?

I agree with @Teri Feeney Styers that this came up quickly. Regardless of your political agenda, it is something every resort town is trying to navigate to keep the economies moving. I live in Frisco, Colorado, and they are looking at employee incentives but have no restrictions. Unincorporated Summit County had 90 vacancies they couldn't fill with the primary reason as affordable housing... They are actually offering up to $24,000 for a year long lease to locals for a 3BR place. That is great money for investors that can covert from STR to LTR. So incentives are working better than disincentives. Places that offer disincentives, like Breckenridge where homeowners had less than 2 months to understand there won't be any more STR license if you sell, saw an increase in everyone getting a license "just in case" and have seen all property values go down. There is an argument that slowing property values in this insane housing market isn't going to really hurt anyone but the rich, but there have been several people speaking up that they use the STR to afford their mortgage, so rather than hurting investors are they hurting the people trying to make it work in an expensive market? Are they encouraging people to just buy and sit on their properties instead?

There is a fine balance of government's role keeping the town running and invading property rights. I do think there are plenty of opportunities in the outskirts of resort towns for both price and STR regulations, but you take a hit on the income. Evergreen and Conifer are nice, but not in demand year round.

@Nicholas Libertin being from Colorado, when you say mountain property, I think many of these other suggestions fall off. Now that’s me being snobby.

There are still places where STRs work in CO near the ski resorts, like where I am in Summit County. The challenge is the unpredictability of local regulations across the board in resort towns. They are all fighting workforce issues, but they all need the STR capacity for tourism.

@Jake Sklanka I have seen more price drops lately, and definitely seen deals fall through right after they announced.  Particularly in the Tiger Rd area where it isn't in the heart of Breck, but those larger houses are being impacted.  I agree that people will still continue to pay to live there, and I certainly agree that the workforce housing is critical, but the people paying to buy now are not paying to provide long term rentals.  

That is a very interesting perspective on the BGV expansion and them persuading the policy on STRs.  I am sure they are at the table.  I just wonder if we can't incentivize companies like them and hotels to require a portion be long term rented when they have that much capacity compared to the mom and pop owners.

I use Long Law Group. They are good with real estate on the tax planning and CPA sides.

@Jake Sklanka I agree that it probably isn’t going to move the needle much regarding long term rentals. People don’t want to rent out their mansions to locals for half their mortgage. I do think something needs to be done, and a halt to property turnover and rising prices in Breck are probably for the greater good. I do like how other towns are approaching it with more warning and more incentives rather than disincentives. 

I have a unique property I am interested in here in my town of Frisco. We are nestled in between 5 ski resorts and a little over an hour to Denver. The property includes 2 lots, one with a SF and one with 6 cabins. There is a lot of potential, but it also is rented under market rents until next summer and needs some love.
The seller has offered seller financing with reasonable terms. The bank wants 30-35% down. Any suggestions for how to BRRR a property like this?

@Fang Underhill I live in Frisco, about 10 minutes from Silverthorne. There is a lot of new development in Silverthorne making the old commuter stop into more of a community vibe. There are lots of new condos going up that seem to be worth it for many Denver investors looking for a place to rent and use. So far, they are STR friendly, but things are changing quickly up here.

@Jamie Salyer I am just catching up on this and see you are under contract now! Congrats! That was a beautiful remodel. I have a home in that same neighborhood (my grandmas house I bought from her), so I used to walk by that house all the time! I have since moved to Frisco in the mountains. I flipped one in that same area last year and found the garage issue to be a similar issue. Good lesson learned for the future!