Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I know there have been other threads on where to retire in Colorado. But I really haven't found anything to
address some of the things we've been considering. So please forgive me if this is a tad redundant.
We're middle-class 50-somethings without kids and looking at the next phase of our life which we're calling "Pre-retirement". Simply put: we're considering moving to a place where we would like to retire but while we can still work until we decide to retire which is in about 10 yrs or so. Not exactly looking for a wilderness / small-town but rather something where we'd be close enough to a good metro area for a big-city weekend or evening.
Ideally we'd like to get into a place that would have good vacay-rental appeal so that when we did retire, we could rent it out when we travel abroad 6 months out of the year. So any natural areas that appeal to vacationers would be a good focus. Keep in mind we're middle-class folks looking at 2BR/2Bth townhomes or condos at well below rock-star prices.
Thinking about a week long trip in late April-early May to land in Denver and spend a couple days here and there to get some feel for what's available. Any suggestions or links would be greatly appreciated.
No, I believe you are correct that what you want to do has not been brought up before.
You can quickly narrow down your search area by deciding what constitutes a "good metro area for a big-city weekend" for you. By any definition, metro areas are few in Colorado: Denver, Colorado Springs, Ft. Collins, Boulder, maybe Longmont, Loveland; all east of the Rockies. Grand Junction with a population of 60,000 is the largest city on the west slope, and somehow it does not sound like what you are describing.
Vacation rentals and their pitfalls have been discussed, and you might want to do a search on that topic. The important question here is just what six months you are going to be absent. While vacation rentals are possible at almost any time of the year, some areas will certainly do better at certain times of the year.
Need more information, I think, to get useful answers. What sort of jobs? What price range for a condo? What part of the year will you be wanting to rent out?
For maximum rental opportunities and closeness to the big city, you should start by looking at Summit County. Anything else will be further out and might be less reliable to rent out.
Summit County might be a bit pricey and you'd have to deal with I70 weekend traffic, but it's the biggest area and most centrally located in the mountains.
Other areas are Buena Vista or Salida, about 2 hrs from CO Springs or Pueblo. Woodland Park or Divide or Cripple Creek area is closer in to the Springs. Colorado city if you want to be close to Pueblo. Canon city is also an option as well. It's warmer and dryer and affordable, big enough to be it's own town, but close enough to CO Springs or Pueblo.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,724 posts, read 58,067,115 times
Reputation: 46190
Consider CoS, as it would have a more seasonal / ST 'rental' situation with military, retirees, access to recreation, city with potential as a tourist / PT destination.
As a pre-age 50 retiree who keeps multiple properties in vacation / attractive areas...(still have props in CO and lived there for 25+ yrs)
Consider YOUR tastes / needs / activities / desires FIRST. DO NOT overpay for property in vacation mecca (properties retain a high price b'cuz there are enough 'non-diligent' buyers to sustain high prices)
Management fees can be CRAZY high, profits (?) will be elusive. Equity gain in Colorado will be rough.
as a retiree... get the RIGHT spot for you. your list will be different, but my 5 min list is such:
<1hr to Intl airport
Tax free State for Domicile and any income producing props (EZ tax preparation, low costs while retired) (I use SD, TX, WA, TN, & NV but you can add WY, AK, NH, FL)
I prefer to be in a SMALL college town (more options for continuing edu, teaching, culture, diversity, arts, recreation, rentals, businesses...)
'Active Senior' friendly community and 'aging' residence. (Good access, complete living space on each floor (can 'rent-out' daylight basement or space above garage))
Multiple living spaces for aging parents / self / caregivers ...
Great view (A must when you are retired and finally have time to enjoy the view!)
EZ maint (low mowing / care) I use my renters to mow / water / garden and feed my pets
Cash flow neutral (get enough positive cash flow to offset your expenses (property taxes can be huge in desirable view location))
Ideally.... have enough cash flow to fund YOUR rental wherever you happen to want to be (in early retirement, Toronto, Telluride, Tahiti)... i.e. own a commercial property with national NNN tenant with 7 - 10 yr lease... No hassle / no surprises / no need to worry about tax / insurance / maint costs
Sustainable plan... elder care / medical / financial / social to fit future needs (We cared for seniors for last 30 yrs, so get it RIGHT (and in writing) before you turn 75, (just-in-case)
(I and others have created a retiree relocation spreadsheet that scores based on extensive and weighted criteria, you should consider that... my results were very surprising to me and highlighted why I couldn't choose my top desires, but gave me some great second choices)
I would give Denver < 5 min. if you must... YMMV
Consider house swapping / house / pet / plant sitting as a way to discover your new 'home' / community
I know there have been other threads on where to retire in Colorado. But I really haven't found anything to
address some of the things we've been considering. So please forgive me if this is a tad redundant.
We're middle-class 50-somethings without kids and looking at the next phase of our life which we're calling "Pre-retirement". Simply put: we're considering moving to a place where we would like to retire but while we can still work until we decide to retire which is in about 10 yrs or so. Not exactly looking for a wilderness / small-town but rather something where we'd be close enough to a good metro area for a big-city weekend or evening.
Ideally we'd like to get into a place that would have good vacay-rental appeal so that when we did retire, we could rent it out when we travel abroad 6 months out of the year. So any natural areas that appeal to vacationers would be a good focus. Keep in mind we're middle-class folks looking at 2BR/2Bth townhomes or condos at well below rock-star prices.
Thinking about a week long trip in late April-early May to land in Denver and spend a couple days here and there to get some feel for what's available. Any suggestions or links would be greatly appreciated.
Thanks!
impossible to give you a meaningful response without knowing your price range.
as well, need to know if you require the rental cash flow to keep the place. There's a huge difference in wanting to supplement your retirement income/keep a place maintained/occupied by 6-month leases or short term-rentals requiring on-site pro rental property management when you're out of the country vs you needing the income for PITI, maintenance, upkeep, repairs. Furnished or unfurnished rental situation? Don't forget that active on-site property management will take a significant chunk out of the gross rental income. And Colorado's personal income tax will be a bite on your proceeds, too.
It comes down to making a business out of the property rental, which is what you're really proposing. "best" rental potential in Colorado will be in the tourist areas, but these will also be the higher priced properties. Given Colorado's real estate market right now, few places will cash flow as rentals at the current tourist area rentals.
PS: If you think you're going to buy a good candidate for a long-term rental market mountain property for cheap in Colorado right now, I can save you a trip.
Just off the phone this AM with my RE broker, and he's got nothing that will come close to cash flowing in Summit or Eagle counties at this time. Everything appears to be at the "top of the market" or folk seem to be on fishing expeditions to find true price discovery. The marketplace is quite different than the years I was buying here when foreclosures and bank repo files were bursting at the seams in the economic downturn at the time ... even then, it took years before any property I purchased broke even on cash flow with year-'round rentals. Six month rentals are primarily in the province of ski season rentals, not residential rentals ... and the six month rentals are primarily to ski industry workers who are a whole different game for property management, structure wear and tear, etc ... compared to short term turnover rentals (where a 100 days rental activity per season would be a remarkable occupancy rate with aggressive property management/marketing and a desirable location (read: high initial cost and ongoing maintenance costs).
You might take a look at Estes Park -- an hour from Boulder, 90 minutes or so from Denver.
The market is hot right now. A friend of mine owns a vacation rental property there. They decided to buy another place just for themselves because their rental is booked so much they don't get to use it.
You might take a look at Estes Park -- an hour from Boulder, 90 minutes or so from Denver.
The market is hot right now. A friend of mine owns a vacation rental property there. They decided to buy another place just for themselves because their rental is booked so much they don't get to use it.
As a long time real estate investor in the Colorado resort area marketplace, when I see such a post as this ... my first reaction is
HURRAY! HUZZAH! The Colorado mountains real estate market "... is hot right now". FANTASTIC! My paper investment is going up!
But then I want to see the P&L on the individual properties for sale; or, for that matter ... on your "friends" places. A "HOT" market means STRONG PRICES for the real estate buyer today. Buying at or near the top of the current market cycle is not the same thing as getting a good cash flow ...
Don't forget that these short term rental properties require active on-site property management, cleaning, and servicing for each rental turn-over. As well, the wear and tear on the units will be far higher than in an owner-occupied situation. You may feel like a "condo guest" when using your place even with a lock-off for your personal effects because of the shared use situation.
Many condo complexes REQUIRE annual or bi-annual replacement of carpets, appliances (stoves & dishwashers, esp), many furnishings, mattresses, towels/linens, and interior repainting along with common area refurbishment on a regular basis to maintain the quality of their product in the rental pool. Your condo unit may or may not have as much wear & tear as the next one, but you'll be held to the same standard refurbishment package and common share expenses. The management will make a bulk purchase of stuff and will have a crew go through the units to install them; you get the deductions on your statement or if there's a revenue shortage, the bill for the expense.
All of these overhead expenses, management & booking fees come off the top of your gross rental income.
And the reality sinks in for some folks that bought a place to use in the mountains and rent out "now and then" to help with the cash flow/expenses that their prime rental days/weeks coincide with the days/weeks that they want to use their own unit. The key to this whole process is to understand what you are really purchasing when you buy a place in a resort area. Just because a place gets a lot of rental days doesn't mean that it's making money or even cash flowing. Many folk over the years have found that their ROI is only captured the day they sell the place, pay their capital gains and income taxes ... and find that the appreciation was only a nominal return after all was said and done.
IMO, 99% of the people who want to stay in the mountains for a weekend at nominal expense will be better served by renting or leasing when they wish to stay there. Fortunately for me as a long-term investor, there's a whole bunch of folks who don't agree with that concept and BUY BUY BUY places that prove to be money losers or that they can't use.
The bottom line, OP, is you need to decide if you're in the property management/ownership/rental business seeking cash flow to support your mountain rental property or if you really have the finances to buy a residence and enjoy the use of it.
PS: You really need to have your accountant in on the whole scheme of a rental property biz. One of the unforeseen consequences for a lot of folk these days that I've seen in retirement situations is the day they come up with capital gains in selling a resort property becomes the year that their personal income taxes skyrocket up to much higher rates due to that year's income. A lot of folk forget the 2 out of 5 year primary residence deduction with a 2nd (or resort) home, and the tax shelter that it can provide. But the taxman is especially watching for any shading of this ... there are qualifiers to establish a primary residence that must be met and the burden is on you to prove that you complied. Everybody's situation is different, so your accountant is key to making better financial decisions.
PPS: one must also do your due diligence re planned or deferred condo common maintenance before buying a place. For example, a friend bought an Aspen area townhome a few years ago. Undisclosed to him was that the mood of most of the owners and the management was to refurbish the grounds and exterior of the place, and a vote was being considered by the board for a substantial capital expense. The reason my friends' place was put up for sale was because that owner didn't want to put any more money into the place which he felt was unjustified. But my buddy bought the place and within that first year, the owner's association and board presented the final architectural plans to include revamping of the exterior common grounds, a new roof, new high efficiency boiler system, a new swimming pool/upgraded health club facilities, repainting of all the common interior & exterior, and some structure details to upgrade the reception area. Voted on and approved by the management and owner's group with a notice to proceed on the project to a GC and various sub-contractors to be completed ASAP for the next upcoming ski season. The association sent out capital expenditure bills based upon the square footage of each townhome. My friends' assessment was over $75,000., due and payable upon receipt of the bill. He had to pay up that month or face a lien and possible foreclosure on his townhome. (Fortunately, he had the financial ability to do so, but it totally changed the value of what he'd purchased ... and the FMV of the townhome did not go up in accordance with the capital expense).
Similarly, I've seen deferred maintenance issues come up before the condo/townhome boards where roofs, spa facilities, and such were getting special assessments to effect the repairs/improvements needed. Even if it's a nominal 5-figure sum, it's still a bite on top of a purchase.
Last edited by sunsprit; 02-20-2016 at 06:17 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
