Investment Property Information

11/21/2019

Investment Property & Income Opportunities in Summit County

Summit County offers countless possibilities when it comes to income-producing investment properties. At Paffrath & Thomas we have 4 decades of experience helping clients find properties that meet their investment goals. You may be looking for a condo to rent, a great lot to build a spec home, or maybe a house in the woods that will appreciate over time. No matter the property type Paffrath & Thomas will be able to help you evaluate the investment potential.

Short-Term Rentals for Vacations & Visitors

Breckenridge and the surrounding areas are great vacation destinations year-round and as a result, investors are able to benefit from short-term rental income. Depending on the property, your Paffrath & Thomas broker will be able to give you a debt analysis of each property with actual past rental numbers. Some properties will offer better returns than others but regardless of the residential property type or size, you may be able to generate a considerable amount of rental income. Although our properties do provide owners with satisfying rental income, the best investments for our clients are those that they enjoy themselves!

Long-Term Rentals For Residents

In recent years Breckenridge and the surrounding towns have been battling a housing crisis for its employees. Between the resorts, restaurants, construction companies and other businesses, there is a relatively large workforce here. With limited area and allowable density much of our workforce struggles to find affordable housing. This is just the sort of situation we find investors capitalizing on. Whether you are renting a condo, duplex, or single family home there are plenty of people out there that are looking for reliable and affordable long-term rentals. If you are an investor that seeks this sort of business opportunity, please contact us so we can help you determine the investment property right for you.

Management Companies

Using a local management company makes it easier to rent out your vacation home by managing rental scheduling, cleaning and maintenance.  Being in a resort town, there are many management companies to choose from. Each one offers something different for each complex and rental situation. We are familiar with each management company’s strategy and focus and can recommend the best fit for you and your home.  Your Paffrath & Thomas broker will work hard to make sure you are realizing the greatest income possible all while benefiting from the amenities that each management company offers. When renting with a full-service management company you can expect to realize 52% to 72% of the gross rental profits. Keep in mind that even if you are with a management company you will be able to use your condo or home anytime you like, you just have the management company make note of your upcoming visits.

Vrbo & Airbnb

As an alternative to renting with a management company, you can also list with rental sites like VRBO or Airbnb. This method requires more work on behalf of the owner because the owner manages booking, key pickup, cleaning services, and any maintenance calls on their own. To determine if this is the best method for you, call a Paffrath & Thomas Broker so they can help you review the pros & cons of each method and provide you with all the necessary contacts.

Long-Term Appreciation

Breckenridge is one of the greatest ski destinations in the country. As a result of its popularity with out-of-state visitors and its close proximity to Denver, our property values have continued to climb. Although we are not immune to economic downturn, Summit County Real Estate values are less impacted than most places in the country. Breckenridge has more and more visitors each year, breaking records year over and over. Although it is hard to calculate the long-term, it’s clear that more people want to own here and there is not much more room to build!

1031 Exchange

As investors switch or flip properties they may want to consider a 1031 exchange. Under Section 1031 of the United States Internal Revenue Code, the exchange of like-kind property in order to defer the recognition of capital gains or losses due upon sale may be allowed. What this means is that if you re-invest the money made by selling a home by buying another home, you do not have to pay the taxes made on the sale. We always recommend that you consult an attorney or your CPA before considering a 1031 exchange. Contact a Paffrath & Thomas broker so they can better assist you in organizing the exchange and preparing your contracts to be in accordance with the 1031 rules and regulations.

SPEC Building

Many people want a new home but don’t want the hassle of a custom construction project and that’s where spec homes come in. Summit County has been a great spot for investors to build spec homes (new homes built before they have a buyer). Spec homes are available at different prices levels so finding one that fits your budget can be done.  Paffrath & Thomas has worked with many different builders in the area and personally know local builders, architects and engineers to help find the right fit.

Why Paffrath & Thomas

Over the last 4 decades Paffrath & Thomas Brokers have sold to investors of all kinds. We pride ourselves on putting our clients first and making deals that will make them money and can feel good about. Although many of our clients enjoy the rental income, our happiest clients are those who are able to share and cherish the memories of their mountain property. There are not many places in the country where you can consider an investment property your home or vacation gateway. Whether you are looking to buy a property or if you currently own one, call a Paffrath & Thomas Broker to discuss the investment opportunities available.

When it comes to investment property there are certain tax and expense considerations, we always suggest that you talk with your tax advisor.