Last updated on June 21st, 2023
airbnb property investment Breckenridge
Vastly known for being the ski resort during the winter, Breckenridge also offers so much more than mountain view sceneries! Colorado Mountain Retreats confirms Breckenridge as a popular summer & winter destination area which is a hotspot for vacation rentals.
However, it’s still recommended to learn about buying a property for Airbnb in order to make sure that it’s profitable. To begin with, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in Breck.
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“Vacation rentals can be the perfect way for second homeowners in Breckenridge to cover some or all of their operating expenses while still offering the convenience of enjoying the home whenever they want.
We often enter into conversations with Breckenridge real estate buyers about ways in which they can generate some rental income when they’re not using their ski home or condo.”– By Pete Deininger on Breck Property Investment
Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.
This includes the best website recommendations for property investment in Breckenridge, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!
Why Should You Consider Buying An Airbnb in Breckenridge?
Breckenridge is a popular ski resort town that is widely known for its breathtaking mountain sceneries and endless options for recreational activities to entertain yourself all year round. Here are some of the major reasons why you should consider buying a property for Airbnb in Breckenridge:
1. America’s favorite ski resort
Breckenridge is best known as a luxurious ski resort with dreamy landscapes where you can enjoy high-quality amenities and get engaged in exciting outdoor activities! As a matter of fact, this town welcomes around 3M visitors annually. This surely would attract investors who are interested in tourist accommodations!
2. The job market is great
With an economy based around tourism and accommodations, Breckenridge offers various jobs in these sectors. But still, there are areas like healthcare, retail and administrative services that also make an important contribution to this city’s economy. In fact, the town has an unemployment rate of 4.4% which is lower than the national average of 6.0%.
What are the cons of buying an Airbnb property in Breckenridge?
Now that we know the advantages of investing in Breckenridge, let’s move on and take a quick look at the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. The real estate market will make you think twice
If you’re looking for affordable properties because of a tight budget, then maybe you should think twice about investing in Breckenridge because its average property value is quite higher than most cities in the country. Based on Zillow Index, the median housing value here is more than $1.2M and is trending up 12.1% year-over-year.
2. High cost of living
In addition to its housing market, the cost of living is also another downside in Breckenridge. A luxurious ski resort usually means a higher price when it comes to utilities, groceries, etc. According to AreaVibes, in Breckenridge, the cost of living is 31% higher than the national average and 19% more expensive than in other cities in Colorado.
Best Neighborhoods for Airbnb in Breckenridge
Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Breckenridge. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:
airbnb property investment Breckenridge
1. Highlands
- Annual Revenue: $62,676
- Occupancy Rate: 85%
- Average Daily Rate: $194
2. Maggie Point
- Annual Revenue: $49,926
- Occupancy Rate: 70%
- Average Daily Rate: $142
3. Blue 52
- Annual Revenue: $53,301
- Occupancy Rate: 55%
- Average Daily Rate: $201
Is Property Investment Profitable in Breckenridge, CO?
Using an Airbnb profit estimator, it was discovered that a 2-bedroom apartment in Breckenridge can generate an annual revenue of $76,511 with a steady occupancy rate of 70% and a nightly rate of $236.
airbnb property investment Breckenridge
Properties For Sale in Breckenridge, CO
Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.
At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the homes for sale in Breckenridge along with the calculated gross rental yield, cash-on-cash return, and annual revenue.
135 Dercum Dr Unit 8618, Keystone, CO 80435
1. Studio-type Property for Sale Breckenridge
- 3.4 miles to Summit Cove Elementary School
- Asking Price: $150,000
| GROSS RENTAL YIELD | 25.54% |
| ANNUAL REVENUE | $38,306 |
| CASH ON CASH RETURN | 50.84% |
6313 Mesa Rd, Hartsel, CO 80449
2. 1-Bedroom Type Property for Sale Breckenridge
- 25.6 miles Edith Teter Elementary School
- Asking Price: $160,000
| GROSS RENTAL YIELD | 25.22% |
| ANNUAL REVENUE | $40,357 |
| CASH ON CASH RETURN | 49.90% |
19253 E Us Highway 24 LOT 13A, Woodland Park, CO 80863
3. 2-Bedroom Type Property for Sale Breckenridge
- 0.9 miles to Gateway Elementary School
- Asking Price: $210,000
| GROSS RENTAL YIELD | 26.27% |
| ANNUAL REVENUE | $55,159 |
| CASH ON CASH RETURN | 53.03% |
715 Darby St, Colorado Springs, CO 80907
4. 3-Bedroom Type Property for Sale Breckenridge
- 0.8 miles St. Andrews School Of Math And Science
- Asking Price: $360,000
| GROSS RENTAL YIELD | 21.55% |
| ANNUAL REVENUE | $77,597 |
| CASH ON CASH RETURN | 38.90% |
9202 W 94th Ave, Westminster, CO 80021
5. 4-Bedroom Type Property for Sale Breckenridge
- 0.5 miles to Lukas Elementary School
- Asking Price: $545,000
| GROSS RENTAL YIELD | 24.54% |
| ANNUAL REVENUE | $133,740 |
| CASH ON CASH RETURN | 47.85% |
Conclusion
Based on intricate market research, property investment in Breckenridge can certainly generate a nice cash flow for property investors as long as the right neighborhood is targeted and potential revenue is calculated using an Airbnb calculator. However, it’s not a suitable location for those who have a limited budget in hand as the property prices as well as the cost of living are more expensive than the national average. It’s definitely worth it to try applying for loans & mortgages because owning a property in Breckenridge while achieving financial freedom can be a once in a lifetime experience!
