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All Forum Posts by: Ryan S.

Ryan S. has started 5 posts and replied 31 times.

Quote from @Peter Walther:
Quote from @Ryan S.:

Thank you, everyone, for your advice! I wanted to provide an update on the status of my situation. I hired a litigator to review my position, and they concluded that we had a very strong case. The seller had attempted to buy me out of the deal but ultimately realized they had no legal grounds to back out. Thanks to my attorney’s efforts, the seller has backed down and has now agreed to proceed with the sale.


Congratulations, I'm glad it's working out for you.  Did you find out why the seller wanted to back out?

Sellers remorse.

According to the agent involved in the deal, they think I can get these numbers... Rates:

$2,000 Daily

$10,000 Weekly

$30,000 Monthly

$25,000 Long Term Monthly

$3,000 Holiday Daily

$15,000 Holiday Weekly

I am looking for insight for anyone who has experience in this market to see how realistic that is... 

Quote from @Michael Baum:

Wow @Ryan S. can't wait to see some pics.

Have you checked to see what others are doing in the immediate area on VRBO and AirBNB?

Does it come fully furnished and ready to go or do you need to outfit the place?


 Yes. I am buying it furnished. 

Here is the link: https://www.realtor.com/rentals/details/124-E-Durant-Ave-Apt...

Quote from @Michael Baum:

Please give us a bit more info @Ryan S. Getting a great STR like you are telling us about is more rare these days so I would be interested in the purchase price etc.

30k a month is a huge number.


Price is $4,250,000. Taxes 10k HOA is 9k

The current owner never did short-term rentals. He only occasionally rented it out monthly during peak times and was getting 30k a month. 

Quote from @Andrew Steffens:
Quote from @Ryan S.:
Quote from @Andrew Steffens:

Curious what is the purchase price and taxes/insurance/HOA?


Price $4,250,000. Taxes $10,000. HOA $9,000. Insurance $4,000

Here is the property: https://www.flexmls.com/share/BYLRS/124-E-Durant-Avenue-7-As...


 Very nice, what is annual income?


Not sure... The previous owner used it occasionally and rented it out to offset some costs. I’ve spoken with a few agents who estimate it could generate anywhere from $150,000 to $300,000 in revenue, which is a big range.

Thank you, everyone, for your advice! I wanted to provide an update on the status of my situation. I hired a litigator to review my position, and they concluded that we had a very strong case. The seller had attempted to buy me out of the deal but ultimately realized they had no legal grounds to back out. Thanks to my attorney’s efforts, the seller has backed down and has now agreed to proceed with the sale.

I'm in the process of purchasing a second home in Aspen, CO, which will also serve as my first STR property. The townhouse is located in Aspen's sought-after lodging district, where STRs are fully permitted. It's a newly renovated 3-bedroom, 2-bathroom home, just one block from the ski slopes and four blocks from downtown.

The current owner has been renting it out for $30,000 per month during the peak winter and summer seasons. Over the next couple of years, I don’t plan to use the property often, but I may stay there occasionally when it’s not occupied. My primary focus is on maximizing cash flow.

Does anyone has experience with STRs in Aspen, I’d love to hear your advice or insights!

Quote from @James Carlson:

A bit of a rant here ... I've been in these forums for seven years and have followed the Airbnb laws in Colorado the entire time. I've always been able to find my STR clients investments that are legal and whose numbers works. Even new laws restricting short-term rentals seemed only to present new opportunities to savvy investors who knew how to find the gaps.

But the last year here, I've started to wonder if Airbnb and short-term rentals as I've known them are dead in Colorado. 

It seems that a mix of regulation on the legal side and taxation on the numbers side have changed the landscape. Anyone out there feeling this?

Airbnb laws

On the laws side, the noose feels like it's tightening. 

-- Much of Denver metro has outlawed it. (I know there are exceptions in Wheat Ridge, Westminster, Adams County, etc. I still have clients crushing it there.) 

-- Ski towns like Breckenridge and Steamboat Springs have essentially banned it. 

-- Unincorporated counties -- historically, the more conservative, skeptical-of-regulation type of government bodies -- have clamped down. Routt County, where Steamboat is, bans STRs. Clear Creek County and Gilpin County have caps and are past those caps, as is Summit County. Jefferson County, which technically allows short-term rentals, is fickle with permits and just revoked one of my clients' permits for arbitrary reasons.

-- The biggest indicator of turning public sentiment was just last month, in December, when voters in Woodland Park approved a ban on vacation rentals that also appears to NOT grandfather in existing licensed properties. I've never seen a new STR law that didn't grandfather in existing permitted short-term rentals. (Littleton and Colorado Springs, for instance, initially had laws allowing Airbnb and then revoked those laws but grandfathered in existing permits.) And Woodland Park is not known as a big liberal city.

Numbers side

And then there are the numbers, which just aren't as good as they were.

-- The influx of STR supply has certainly brought down Airbnb revenues the last few years for everyone. That dynamic will balance out this year, it appears, but still the gold rush of a few years ago is definitely over.

-- But the real nail in the coffin could come in the Colorado legislature which is considering reclassifying STRs as commercial property for property tax purposes. (Senate Bill 33, for those keeping score.) I just ran numbers for a client on a $550,000 property. Under current law, annual property taxes would be $2,300. If this new bill passes, their bill would jump to $9,800/year. 

So, what does this all mean?

The state law on property taxes is the biggie here. If it passes, I think the motivations to buy a vacation rental in Colorado will change from mostly investment to mostly personal. There will always be people with money who want a second home in Colorado who are fine as long as their mortgage is covered. But maybe the days of nabbing a killer STR investment are coming to a close.

If the property taxes are not changed, then you still have to deal with a shrinking pool of areas that allow STRs. But I think savvy investors will be able to navigate those laws to take advantage of artificially suppressed competition to do well. 

What are others feeling out there?

Looks like the bill did not pass! 

Quote from @Tom Gimer:
Quote from @Steve K.:
Quote from @Tom Gimer:

You can't take an element from state X such as "uniqueness" and try to apply it in state Y where that appears not to even be part of the analysis.

Let's see how this turns out.


 Tom so you wouldn't be as concerned about that element? I defer to your expertise here. 

Does the contract include a monetary damages provision? Don’t know, haven’t read it. But given that it expressly includes a specific performance provision I would not be ignoring it… and neither would a judge or mediator.

Real estate is unique by nature. People should stop applying sale of goods theories to it.  


Got it. Contract says Buyer may elect to treat this Contract as being in full force and effect and Buyer has the right to specific performance or damages, or both.

Quote from @Tom Gimer:

You can't take an element from state X such as "uniqueness" and try to apply it in state Y where that appears not to even be part of the analysis.

Let's see how this turns out.

Sorry, I don’t understand. May you please elaborate.