Steamboat Springs, Colorado Condo Investment: How to Buy Smart.
Before you buy that awesome condo as a second home/ski vacation get-away that you’re banking on to pay for itself via rental income, think beyond what you like and make sure it’ll be attractive to your future renters as well. The thought process should go something like this:
What I Might Want in a Second Home/Condo
- Good location – easy access to town and ski mountain
- Size – Ample bedrooms and bathrooms
- Overall floor plan that’s comfortable
- Amenities: hot tub, pool, fitness room, shuttle service, indoor parking, owner’s storage space, wireless Internet service, washer/dryer in unit
- Condition
- Low HOA fees, but an HOA that covers the normal HOA expenses
- Healthy Capital Reserve Fund (no sense having low HOA fees if your HOA Capital Reserves are so low that you’re getting assessed an extra fee every quarter too)
- Great value
- Rental income history/potential that pays for the condo (don’t forget the property management fee and what it does and does not include)
- Sales history in the building – not always a perfect indicator, but an indicator of investment liquidity none-the-less
What Renters Look For in their Vacation Condo
- Ski mountain location and the closer the better
- Ample sleeping accommodations
- Amenities: hot tub, pool, fitness room, shuttle service, wireless Internet service, concierge
- Price and/or vacation packages
- How does it look overall on the Internet – that’s all they’re going to see when searching options, so whoever is your property manager better be a good property marketer tool.
- Steamboat Condo with Pool
If you want to invest in a Steamboat Springs condo or townhome, you have to decide what’s important to you. Prioritize things like:
- Your comforts and accommodation while you stay in your residence
- Actual income you can gain from renting the unit
- Cost of ownership: (mortgage, taxes, Home owner dues, property management
Make sure the numbers add up and if it’s rental “income” you want know as much as you can about the fixed and variable costs involved as well as the revenue variables you might encounter. A good real estate agent will guide you through the questions to consider, so you’ll have all the possible advantages to being a profitable second home owner.
If you would like assistance in investing in Steamboat Springs real estate, return on investment is my game. Give me a call.
Regards,
Charlie
Charlie,
I recently moved to CO and my wife and I are beginning to think about investments. We visited Steamboat recently and I wanted to check into the market for real estate rentals. Though income would be nice, I want the investment to pay for itself over a 10-year amortization.
Depending on what the market is like and how well the first rental performs, I suppose we would be good for investing in more. For now, I am looking for guidance on the rental market (year round), typical rates that can be realized, and really what we can expect if we jump into that market.