What Does It Take to Make This Breckenridge Condo Cash Flow?
Photo showing condos in Breckenridge, CO
Can you cash flow from a mountain home? We’re finding out by looking at the numbers on a 2 bedroom condo in Breckenridge.

While a nice condo in the mountains close to skiing sounds like a dream, is it a solid investment?   We sat down with Summit County realtor Amy Nakos to see what the numbers really look like on a mountain property.  Our biggest question—is it possible to cash flow from a condo in Breckenridge? 

We looked at a 2-bedroom condo near Breckenridge that has some updates but could still be modernized.  It costs $925K, and we assumed a 6.25% interest rate. She ran the numbers with the best-case rental scenario: short-term rentals throughout the year, including peak times of Christmas and New Years.  Even with those numbers, the condo still has a negative cash flow of $2K a month.  For some people, $2K a month for their vacation home is a great investment and legacy for their family. 

However, we wanted to know what it would take to make the condo break even for cash flow, allowing us to vacation for free.  It turns out the biggest impact on cash flow is the down payment amount.  For this condo, we would need to put down 58.7%, or $543,100.  Is it worth it?  It depends on your priorities!  Listen to our podcast with Amy to learn more about these numbers, and the 9 factors to consider when buying a mountain property. 

Breckenridge Condo by the Numbers

We used Amy’s spreadsheet to see how this deal plays out.

Table with Operating Data on Breckenridge Condo
Operating data with a 20% down payment
Table with Cashflow Data for Breckenridge Condo
5 years of cash flow assuming a 20% down payment
Table with Cashflow Data on Breckenridge Condo with higher down payment
5 years of cash flow with an adjusted down payment of 58.7%, or $543,100

Notes About This Deal

  • The cost of property management in mountain communities.  PMs generally charge 30% in the mountains, and they manage properties differently than in a normal home. 
  • The difficulty of procuring a short-term rental license.  Depending on which area you’re in, the wait list can be 30 years! 
  • Why HOAs are more expensive in mountain communities and what your dues will cover.
  • Why buying a mountain property is different from other investments: you’re making a lifestyle choice in addition to a financial one.
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Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
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