All Forum Posts by: Dustin McQuate

Hi Erin,

I lived in Baltimore for 20+ years and now live in Breckenridge, CO.

While I lived in Baltimore, I self-managed multiple LTRs (long term rentals) and now here in Breck I self-manage two STRs (short term rentals).

 I want to add two things that I dont see mentioned in the previous replies, but may be the first things to consider:

1) How much will you use the vacation home yourself?

Do you want a vacation home or are you strictly looking for an investment. If you'll be using the home yourself, then the cash flow may not matter as much. If you want to get that beach house before prices increase even further, the cash flow may not matter as much. Here in the ski towns of Colorado, most STRs are used by their owners. Consequently, most STR owners look at the revenue from renting as a way to offset the cost of having a ski house as opposed to strictly as an investment vehicle.

2)  How are STRs regulated in the area where you would want the vacation home?  

Im guessing you're thinking OC or the Delaware beaches for the vacation rental/ STR. You'll want to know what the STR regulations are at the beach towns you're interested in. Regs can run the gamut: STR licenses are unlimited and available immediately with no restrictions, STRs can only be rented so many nights/ stays a year, STRs can only be in designated areas, the number of STRs are capped and there is a waitlist for a license.

As others have mentioned, typically an unregulated STR will have more revenue than a LTR, but it will require more consistent work and effort.

Hope this helps!

Happy to answer any other questions you may have.  

Good luck!

Investment Info:

Condo buy & hold investment.

Purchase price: $500,000

Completed a 1031 from Baltimore, MD (LTR) to Breckenridge, CO (STR).

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

We moved to Breckenridge full time to enjoy the Rocky Mountains.

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

My wife is a Broker at Sotheby's International RE in Breckenridge and we both have experience with RE investing and financing.

How did you finance this deal?

1031 proceeds + HELOC.

How did you add value to the deal?

Refresh of everything and new furnishings, but the market appreciation here is where most owners earn the majority of their equity.

What was the outcome?

STRing for a nice profit... and I have another free parking spot (when we have no guests) within a block of the best chairlift in town and where I can ski back to within steps of my car!

Lessons learned? Challenges?

Managing STRs requires a lot more time and energy than managing a LTR... but it's been worth it.

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

Laurel McQuate
Broker Associate
Summit Area Specialist
Resort & Second Home Property Specialist

LIV Sotheby's International

Investment Info:

Condo buy & hold investment.

Purchase price: $785,000

Completed a 1031 from Baltimore, MD (LTR) to Breckenridge, CO (STR).

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

We moved full-time to Breckenridge to enjoy the Rocky Mountains.

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

My wife is a Broker at Sotheby's International RE in Breckenridge and we both have experience with RE investing & financing.

How did you finance this deal?

1031 proceeds + traditional mortgage.

How did you add value to the deal?

Minor improvements, but the market appreciation here is where most owners get their equity.

What was the outcome?

STRing for a nice profit... and I have free parking (when we have no guests) within a block of a chairlift!

Lessons learned? Challenges?

Managing a STR requires a lot more time and energy than managing a LTR.... but it's been worth it.

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

Laurel McQuate
Broker Associate
Summit Area Specialist
Resort & Second Home Property Specialist

LIV Sotheby's International