Last updated on June 21st, 2023
airbnb property investment Steamboat springs
Skiing are fairly popular during the winter months, but that’s not the only fun activity that one can enjoy in this city! Steamboat Springs is also a must-see destination during the summer for travelers who prefer to have an adventure of a lifetime. From trails, falls, and botanical parks, this city will not disappoint. If you would like to invest a property in this area, continue reading as we discuss further about property investment in Steamboat Springs.
To begin with, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in Steamboat Springs. Another excellent option is to do rental arbitrage in Steamboat Springs as it’s fairly popular and does not require you to purchase a property.
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“Whether you’re thinking about purchasing your primary home or a secondary home to be used as a vacation rental, buying a home in Steamboat Springs is a wise investment.
If you’re going the rental route, you can make a significant profit on a monthly basis, especially if you opt for a short-term rental.”– The Group Inc on Steamboat Springs 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 Steamboat Springs, 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!
Perks of buying an Airbnb Property in Steamboat Springs
It’s a given fact that Steamboat Springs offers striking natural surroundings and is also a place where visitors can experience exciting adventures. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Steamboat Springs:
1. Top-tier destination for outdoor enthusiasts
Steamboat is a renowned ski destination during the winter season, but it’s also a great place to visit during summer days because there’s no shortage of outdoor activities. For this reason, it’s understandable that many travelers tend to come back to the city each year. So if you’re looking to cater to tourist accommodations you can expect a great number of overnight visitors in Steamboat Springs.
2. Steamboat Springs is quite safe
Aside from looking for a profitable city, it’s also important to consider whether the location you are targeting is safe or not. If you’re looking to invest in Steamboat Springs, then you will be glad to know that the crime rate in this city is 48% lower than in other cities in the state.
3. Low property tax
Another great aspect of investing in an Airbnb listing in Steamboat Springs is that the property taxes are low. Located in Routt County, Steamboat Springs’ average property tax rate is 0.34%, which is fairly lower than the national average of 0.99%.
What should you expect when buying a property in Steamboat Springs?
Aside from the pros of investing in a property in Steamboat Springs, let’s discuss some of the cons so you can know what to expect when living in this fascinating city. It’s always better to look at the two sides of each coin in order to properly set your expectations!
It’s not a cheap city
Steamboat is undeniably a captivating city and while it has many positive aspects, we also need to analyze its downsides, for example, the housing market and cost of living. The median property price is currently $1,057,076 with a 1-year value change of 10.7% as confirmed by Zillow House Index. In addition to this, the living cost is 36% more expensive than the US average and 23% higher than other cities in Colorado.
airbnb property investment Steamboat springs
Is Property Investment Profitable in Steamboat Springs?
Using an Airbnb calculator, it was discovered that a 2-bedroom apartment in Steamboat Springs can generate an annual revenue of $110,675 with a steady occupancy rate of 60% and a nightly rate of $436.
airbnb property investment Steamboat springs
Steamboat Houses For Sale
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 Steamboat properties for sale along with the calculated gross rental yield, cash-on-cash return, and annual revenue.
2300 Mount Werner Cir Unit 629, Steamboat Springs, CO 80487
1. Studio-type Property for Sale Steamboat Springs
- 2.1 mile to Steamboat Springs High School
- Asking Price: $94,500
| GROSS RENTAL YIELD | 26.24% |
| ANNUAL REVENUE | $24,801 |
| CASH ON CASH RETURN | 52.97% |
2300 Mount Werner Cir Unit 243, Steamboat Springs, CO 80487
2. 1-Bedroom Type Property for Sale Steamboat Springs
- 2 miles to Steamboat Springs High School
- Asking Price: $125,000
| GROSS RENTAL YIELD | 28.15% |
| ANNUAL REVENUE | $35,186 |
| CASH ON CASH RETURN | 58.68% |
2300 Mount Werner /319 Cal 7 Cir Units 316 & 318, Steamboat Springs, CO 80487
3. 2-Bedroom Type Property for Sale Steamboat Springs
- 2.1 miles to Steamboat Springs High School
- Asking Price: $115,000
| GROSS RENTAL YIELD | 28.00% |
| ANNUAL REVENUE | $32,196 |
| CASH ON CASH RETURN | 58.22% |
21365 US Highway 40 Lot 33, Milner, CO 80487
4. 3-Bedroom Type Property for Steamboat Springs
- 12.6 miles to Hayden Middle School
- Asking Price: $193,000
| GROSS RENTAL YIELD | 26.05% |
| ANNUAL REVENUE | $50,270 |
| CASH ON CASH RETURN | 52.37% |
1301 Turning Leaf Ct Unit Deedg, Steamboat Springs, CO 80487
5. 4-Bedroom Type Property for Sale Steamboat Springs
- 1.9 miles to Steamboat Springs High School
- Asking Price: $295,000
| GROSS RENTAL YIELD | 29.18% |
| ANNUAL REVENUE | $86,092 |
| CASH ON CASH RETURN | 61.78% |
Conclusion
Based on intricate market research, property investment in Steamboat Springs 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 as the housing market 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 Steamboat Springs while achieving financial freedom can be a once in a lifetime experience!
