Imagine having your own home in the mountains—a place to stay while you ski and spend time with family, plus a potential income stream if you rent it out. For many Coloradans, this is the dream. But what’s buying a property in the mountains really like? Is it worth the expense? We sat down with Summit County real estate agent Amy Nakos to find out.
- Listen to the podcast “#451: Can You Make a Profit on a Vacation Home in the Mountains? 9 Factors to Consider Before Buying” Denver Real Estate Investing Podcast
- Watch the YouTube video.
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
When you think about buying a property in the mountains, Amy says that there are 9 major factors to consider before making your decision. These homes can be a great long-term investment for people who want the mountain lifestyle, but if you’re looking at it from a pure investment standpoint, this might not be the right play for you. Listen to the podcast to get an in-depth discussion of each factor, plus two deal analyses on condos in Breckenridge and Keystone.
9 Factors to Consider When Purchasing a Mountain Property:
- Lifestyle: Does a mountain property match your lifestyle goals? Do you plan on using it as your second home?
- Pricing: Covid had a big impact on prices and appreciation.
- Inventory and Demand: While Amy is seeing more inventory hit the market and move a little slower, overall inventory is still incredibly low. She’s keeping an eye on the busy summer season to determine the latest trends.
- Short-Term Rentals: The rules for short-term rentals can be very strict depending on the location of your property; make sure you know if you can rent on a short-term basis before you buy.
- Rental Income and Investment Realities: Your ability to run a short-term rental will have the biggest impact on your income. If you’re looking to hold the property for 3-5 years and sell for a profit, a mountain home might not be the right fit.
- Home Owners Associations: The HOA dues on mountain properties can be very steep, but they often cover a lot more than a typical Front Range HOA would.
- Financing: A literal million-dollar question! Everyone wants to know if it’s possible to cash flow and vacation for free. The verdict? It depends on how much you can put down.
- Property Management Companies: Property management is different for mountain properties, and it’s best to use a hyper local company that specializes in the type of property you own.
- New Construction: While there are pockets of new construction, there’s simply not enough space for wide scale development.