All Forum Posts by: Jake Sklanka

@Jamie Salyer What's happening in the Vail Valley and beyond? Can't say I've been following with everything going on here. 

The demand for rentals seems to be staying strong around here at the moment.

Last night, Aspen just put a moratorium on STR licenses, new construction permits AND additions to current properties. What an exciting time to watch all of this unfold! haha Interesting to see how things play out in all of the mountain communities!

For jobs of this size, crews usually come up from Denver or COS for the duration of the project. There aren't many companies up in the mountains, so any contacts from your area would be great as well!

@Anson Young @Mindy Jensen @Scott Trench 

Any of you wonderful Colorado folks have a contact for a project like this? Also, let me know if any of you come up to the mountains, would love to meet up! You all rock!

Calling all Colorado contractors!

Our HOA in the mountain town of Breckenridge, CO is getting ready to send out a bid package for an exterior remodel of our building. Ideally starting April 2022. Who would you recommend reaching out to in the Front Range or Western Slope that has experience and may be interested in this project?

Great project to enjoy the high country of Summit County! Ideal temps for working outside in the summer months!

This project is on Main Street in Breck and will have high visibility, so excellent possibility of future work in the area. 

We're also interested in interviewing project managers for this renovation.

Are there any platforms out there to advertise this or tips for putting a project like this out there are greatly appreciated!

Please tag someone or pass on my info if you have someone that might be interested!

Cheers,

Jake

203-509-6561

Investment Info:

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

Purchase price: $649,000
Cash invested: $170,000

Duplex
4 bed / 4 bath on each side

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

Small multifamily, provide local housing, numbers looked good which is hard to find in this area with long term tenants, rapidly appreciating area in the mountains of Colorado close to Breckenridge.

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

I'm a real estate agent in the area.

How did you finance this deal?

Partners brought in a bank that got it done.

How did you add value to the deal?

Remodeled one side and brought total rent up from $3000 to $5100 within months.

What was the outcome?

Rented this amazing property with a creek running through the backyard to local tenants! :)

Lessons learned? Challenges?

Unicorn property for the area with 8 beds and 8 baths. Basically no comparable sales in the area, so listing agent was worried it wouldn't appraise at the purchase price. Talked to a whole lot of people before we found partners interested in the deal, it was a long 6 months to get to the closing table after being under contract twice and falling out due to lenders not thinking it would come in at value either. Well, it did appraise and we're in!

@Candice De Yes, I absolutely agree the tourism overlay plan is an improvement! 

The rest of Summit County was waiting to see what Breck did with their cap on STR and are closely following suit for the most part. There have been some contracts falling out with buyers with cold feet or that realized they can't get a STR license, but it really is what's best for the town in the long run. The experience in these towns will suffer enormously if there is no one to wait tables, bump chairs at the resort, plow the roads or clean the rental rooms etc.

The Town of Breckenridge just bought a number of condos at around market value, put deed restrictions on them and listed them for $160-180k less than they paid to give a few more options to locals that work 30+ hours a week in the county. That's still $475k for a 2bed/2bath, pretty tough for someone living on $15-20/hr.

As @Candice De mentioned, the L2L incentives to Lease to Locals, up to $24k a year on top of normal rent (no cap that I've seen) to 'save ski season' caught my attention. I applied and they said they should have my application approved next week. Incentives rather than limiting property rights. I was absolutely one of the people that got STR licenses for my properties just in case I choose to go back to them in the future.

Both the ski area and town are projecting a huge winter of tourism. One property management group stated they have 50% more bookings than any other year in the past 10 years at the start of the season. Average daily rates are also heading up 20% from winter 2019-20. More tourists = more potential buyers. Prices may not increase as dramatically as they have the past decade, but the demand is strong and inventory is limited which I think will keep it moving along without a drop in values.

@Robert Jordan Congrats on the great appreciation! We're in the same boat over in Breckenridge. Properties have doubled in value over the last few years. Remote work and people 'paying to play' in mountain paradise!

@Hunter Crowder Yep, over 90% on both state and national. Great teachers in person at Kaplan. Get it done! Good luck!

@James Carlson Totally agree with you about Fairplay and Park County, still lots of potential there. Thank you for sharing all of your knowledge with this community!

@Candice De For sure, something does need to change as the Breckenridge experience has weakened with its affordable housing situation and lack of workforce that makes the wheels turn in the local economy.

Have you personally seen any effects in terms of prices yet? I think it's a bit too early to tell, but maybe a little more sustainable appreciation rather than the 20%+. I've had one deal fall out of contract after the Town of Breck announced their cap on STR licenses, other than that, people love Summit County and will continue to pay to live and work there. Long term, preserving the quality of life for locals and the community really has to be the #1 priority or else there really won't be anyone left to host and serve the millions of visitors every year.

One other thing I can't help think is that this is all happening right before the gondola lots are developed. BGV, along with other hotel and condotel operators, want less competition from STRs and have a strong arm in influencing the town's politics.