All Forum Posts by: Robert Jordan

Do you think you will revisit in the future? My project is probably a year or so out. 

I agree that sanity is important but I believe I am leaving a good amount on the table as the property sits. This causes my sanity to  be tested in a different way.

What was your first step? 

I have a SFH long term rental in the potter highlands in Denver. The home is 3/2 it's small and needs some TLC. It sits on a big 8200 ft lot.
It feels like I am currently leaving some value on the table. I'm beginning to explore options of either scraping and building a duplex or renovating current property and possibly adding ADU. I know the potter highlands requires approvals on design to keep with neighborhood look and that can take time and can be difficult.

Any advice on starting point? Thoughts on costs? Should I even think about doing it? What am I missing? 

I have a long term SFH rental in the potter highlands in Denver. The home is 3/2 it's small and needs some TLC. It sits on a big 8200 ft lot. I'm beginning to explore options of either scraping and building a duplex or renovating current property and possibly adding ADU. I know this area requires approvals on design to keep with neighborhood look. I understand that can be difficult. Any advice on starting point? Thoughts on costs? Should I even think about doing it?

Since this thread is still active here is my update. I bought a property in Vail last Feb. Immediately had it out on Airbnb for short term rental. Within a few days I was almost fully booked for the remainder of the ski season. This covered my cost into the summer at which point it was booked pretty steady through the end of Sept. So far I am breaking even not cash flowing yet with first bookings for this season starting this weekend. We only have a few random dates open for the 2022 ski season so demand has been great. Projecting cash flow for 2022.

My agent told me when I bought the place that cash flow might be harder in the short term but equity was king. She was right, my neighbor just listed the exact same condo (size, updates, etc) for almost $300k over what I paid and has multiple offers.

HI all. Thank you all for your comments and advice. Just to clarify the condo is decent size at 1700 sqft and has 3 bathrooms. The central issue is an adjacent room that already has bunk beds in it that I can't advertise because the county has yet to authorize the room as sleeping quarters. Anyone checking in will notice all the extra sleeping space. In reality the condo probably max out at 10-11 for comfort ie: watching tv, dining, etc.. The condo is on the free bus to the ski area, many amenities like hot tubs, pool. I'm guessing the reviews will mention all the extra sleeping space.

What is the value of the added 2-3 guests in occupancy per year? $50 more a night? $100 more a night?  

I want to maximize my return and my weariness is having this space I can't advertise/monetize. Especially given the high HOA and note on the purchase.

I am interested in hearing about others experience with maximizing occupancy for STR. In the ski resort area I am analyzing more beds equal more return per night. Problem is the county regulations are strict on listed occupancy per bedroom and wont allow for non conforming rooms to be listed as bedrooms or additional occupancy. Any ideas on how to get around this?

Example - Property is 1 bdr with loft (3 beds in loft) and an additional room connected the loft with 2 sets of bunk beds in it. The property also has a pull out couch in the living room along a futon in a seperate sunroom. Ideally I would advertise this property as sleeping 12 (which it could easily) but regulations say 8 max.

Thoughts?

Hi I am an investor in Denver with several properties. I am looking to get into the Summit County STR market. I can't find any buys in the area that would at best break even never mind cash flow. Thoughts? Suggestions?

I have been crunching numbers for a similar STR strategy in Silverthorne. So far I don't see a pathway to cash flow. Best case scenario is breaking even(or small loss) and having a condo to visit in the off season. The appreciation increase in summit county over the past 3-4 yrs has priced out profitability of a new purchase in the STR market. I am also weary of the potential of a future appreciation increase. Much like Denver metro, which is still incrementally increasing, a drastic increase in value that recent years have brought is probably not in the near future. People have grown accustom to 20%-30% appreciation in 2 yrs. I am not sure its a reality anymore.

It will be interesting to see how the expiration of the CARES act effects the 2nd home/vacation home market.