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. 

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:

1. Lifestyle: Does a mountain property match your lifestyle goals?  Do you plan on using it as your second home?
2.  Pricing: Covid had a big impact on prices and appreciation.
3.  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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. New Construction: While there are pockets of new construction, there’s simply not enough space for wide scale development.

Links from the Episode

• Deal Analysis 1: What Does It Take to Make This Breckenridge Condo Cash Flow?
• Deal Analysis 2: Breaking Down HOA Dues and Other Costs in a Keystone Condo
• Connect with Amy
• Chris’s Instagram
• Chris’s BiggerPockets Profile
• Chris’s LinkedIn
• Envision Advisors
• Property Llama Portfolio Analysis

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