All Forum Posts by: Kyle Kershner

Originally posted by @Randy Willson:

Thank you, @Kyle Kershner for the clarification on the VT Land Gains Tax. After originally hearing about the restrictions, I was reconsidering my strategy to invest in Vermont. While I'm still in my research phase of REI, I appreciate your insight and will continue to research VT and the Killington area. BTW, what are your thoughts on Okemo vs Stowe vs Killington for STR opportunities. I'm exploring each area. Thank you.

Randy, I don't have experience with STRs in the other VT resort towns, so I'm not sure how to compare them. Vacasa did a study in 2019 that ranked Killington very high among the places to invest in STRs:

https://www.businesswire.com/n...

Sorry, not very skilled at posting on this forum - I hope that link works for you.

Vermont Land Gains Tax is no longer in place unless you subdivide. Here is an excerpt from the VT.gov website:

Notice: Effective with returns filed after Jan. 1, 2020 H.541
of the 2019 Legislative Session changed the definition of “land”
subject to the Land Gains Tax. Under the revised definition, Vermont
land is only subject to the tax when it has been purchased and
subdivided by the transferor within six years prior to the sale or
exchange of the land.

I personally lobbied for this change in Montpelier as did our State Realtor Association - the repeal of this absurd anti-development, anti-flipping tax was an enormous victory for property owners. For many legislators, the term "flipping" is viewed negatively thanks to HGTV and other real estate reality TV, but improving properties creates jobs, employs local contractors, generates revenue for the local building supply industry, brings up property values and thereby property taxes, which helps local government and schools and of course, builds wealth for individuals who invest in our communities. Full disclosure - I own a real estate company and the resale of rehabilitated properties generates revenues in my industry too, but when Realtors make money, so do lenders, home inspectors, attorneys and insurance companies. Thank you Governor Scott, for facilitating this regulatory change that has unnecessarily held back our economy for decades.

Hi Steve, I have two short-term rental condominiums in Killington. In spite of it being a lackluster ski season, my Killington Grand Hotel unit was having the best year in my 4 years of ownership. I've only had my Pinnacle 1BR for a little more than a year, so I can't compare year-over-year rental income, but it was also performing better than expected. AirBnB rentals are not allowed in either of these condo associations, however, so I use local rental companies to manage those properties. If you are considering a condo in Killington, make sure the condo association allows AirBnB. Not an issue if you go with a stand-alone property.

Hi Corey, great story and I wish you success with this investment. I'm a broker in Killington and own a couple of STR condos in town and like Big Sky, Killington is also closed, potentially for the rest of the season. We had a great early season (November) and an up and down winter into March. Fortunately, when ski conditions are marginal, Killington tends to outperform other New England resorts due to it's massive snow-making operations. As a result, one of my units had a record-breaking early season, which should help me carry it through the rest of the year - hopefully keeping it break-even at least.

As a sight-unseen buyer, I'm interested in knowing if any particular marketing efforts influenced your decision to buy, e.g. virtual tour, video tour, floor plans, Matterport? We provide professional photography and video tours of every listing, but in times like these, perhaps we could do more to assist potential buyers with their investment decisions.

Also wondering how many bedrooms/bathrooms your new unit is. Appreciate any feedback and good luck. 

Full disclosure, I own a real estate company in Killington, VT, so I am probably biased, but Vacasa ranked Killington the number 2 destination to buy a vacation home in the US just a few months ago.

VermontBiz.com

There are over 300 AirBnB rentals in Killington and at least as many other short-term rental properties offered through the resort and private rental companies. Most buyers in our market do not purchase for pure investment purposes, as better cash flow can be derived in any number of other markets. Investments here make more sense for the buyer who wishes to own a vacation property for personal use and subsidize the cost of ownership with short-term rental income. A positive cash flow is certainly possible, but not guaranteed. I own two rental properties in town - both are cash positive, but not lucrative; I purchased them primarily for long-term asset appreciation. Killington Resort has invested millions in summer activities like mountain biking and its adventure center, bringing thousands of visitors to town in the summer. Mountain bike days (the summer equivalent of skier days) have climbed from about 2000/year to over 30,000/year in the past six or seven years. Killington and other ski resort areas almost certainly offer better income potential than a rural property like the one near the Canadian border. Resort towns in central and southern VT would also take 1 or 2 hours off of your drive!

I am admittedly biased, as I own a real estate company in Killington, but Vacasa ranked Killington the number 2 destination to buy a vacation home in the US just a few months ago. I acknowledge that "vacation home" is not the same as an investment property, but they did consider cap rates as part of their calculations:

https://vermontbiz.com/news/20...

In case the above link doesn't work:

VermontBiz.com

Most buyers in our market, however, do not purchase for pure investment purposes, as better cash flow can be derived in any number of other markets - as Mark pointed out in his reply. Investments here make more sense for the buyer who wishes to own a vacation property for personal use and subsidize the cost of ownership with short-term rental income.

Kathy Burns is indeed excellent, very knowledgeable and professional.

Hi Stephen. I own a small brokerage in Killington and would be happy to talk to you about Killington investment properties. Okemo is out of my area of expertise, but I can refer you to some quality agents in that market too.