Breckenridge Investment Property: Two Examples With Big Returns

Because of my background in vacation rentals and property management, I get asked all the time ‘what is the best investment property in Summit?’ There are way, way too many nuances and factors to take into consideration for me to answer this question in one blog post, so instead, today, I’m going to talk about two of our current listings and explain what makes them two of the greatest investment opportunities on the Breckenridge market today! 

When people say they are looking for an ‘investment property’ in the Mountain Region, they are usually referring to one of two approaches. The first approach is one that’s gained a ton of attention in the last decade - finding a rental property that will generate rental revenue, and (in a perfect world) a passive income. The second approach is finding a property with untapped equity opportunity, and investing in the appreciation gains over time. The properties I’m highlighting today are great examples of each tactic. First up, we’ll start with our fantastic listing at 465 Four O’Clock Road! 

Sundowner Condo W1

Sundowner Condo W1 is a fantastic rental property not only because of its size, but also because of its location. The Four O’Clock neighborhood in which Sundowner is situated is honestly my favorite Breckenridge Rental Zone 1 neighborhood. Sundowner is four blocks to Breck’s historic Main Street, on the free bus route, two blocks from the town’s hiking and biking trail network, steps away from the Upper Village pool and hottub complex (membership included in the HOA), and two blocks from the Snowflake Chairlift, which has all of the convenience of the larger base areas of the Breckenridge Ski Resort without any of the chaos. 

All of this translates into big checkmarks on your rental’s Airbnb and VRBO listings that will naturally boost the property’s visibility and desirability. While of course our listing isn’t the only great one-bedroom in Breckenridge, our sellers are currently grossing over $50k per year in short-term rental revenue, and their 4.9 star superhost Airbnb listing is included in the sale. The property is being sold fully furnished and turnkey, so its next owners will be walking into an established and profitable business. The walk-in pantry and lockable 5x8’ storage closet are just the icing on the cake with this one!.   

161 Dyer Trail 

This stately gem is pretty much the polar opposite of a one-bedroom ski condo. With impressive bones and an unparalleled setting, this 5,300 sq ft estate presents a rare opportunity to redesign a legacy home in one of the most coveted neighborhoods in Breckenridge. 161 Dyer Trail is one of the older homes in the Highlands at Breckenridge - which means significantly more square footage than the Highlands homes built in the last decade, and an undeniably better lot that is closer to Main Street, completely private, and with unobstructed Breckenridge ski resort views. The property is in great shape, but as a home built in the late 90’s, it could benefit from some updates or remodeling. Because of that, this home is priced well below what other homes in the Highlands neighborhood of this size are selling for.

Now don’t get me wrong - HGTV is not the real world, and a ‘reno’ or a ‘flip’ this is not. In the Summit Area there is basically no such thing as a ‘flip’ and I would never recommend our market to someone in that investment space. This also isn’t a rental property candidate, as it isn’t located in an area that allows short-term rentals. Rather, what makes 161 Dyer Trail an investment opportunity is the expected appreciation over time plus the equity-building opportunities that will come from undertaking aesthetic updates. The location alone is a sound investment, since there are fewer and fewer buildable parcels in the Town of Breckenridge, and the Upper Blue River Basin is inching closer to full build-out. Redevelopment is the future of new construction in the Colorado High Country. If a new owner was to take on some straightforward projects at this property, they would immediately see that added value. If a new owner were to complete a full remodel - let's say at the (very doable) cost of 500k - current market analysis suggests this property could then sell for about 1M more than current asking price, for a 500k return. This estate is a legacy property in waiting. A discerning investor will see the chance to both capitalize on yearly appreciation and equity returns, and - even better - get to enjoy time at their mountain dream home. Stocks and bonds are great and all, but you certainly can’t count on them to help you beat the I-70 traffic to the mountain on a powder day!

Nowadays, the term ‘investment property’ comes with quite the negative connotations. I understand why that is, but the reality we’ve come to realize is that everyone looking to purchase Real Estate is looking to make a good investment. The advice I’m sharing here is not meant for corporations or venture firms (which don’t have a presence in our market anyway), but rather meant for anyone who’s considering buying property in the Summit Area. If you have questions on either of these great properties I’ve highlighted today, want to learn more about other opportunities in our area, or hope to dial in your Real Estate search with the help of a pro, I’d love to talk. Reach out on the form below, or give me a call anytime! 

*Advice is provided as an opinion of the author, and specific results are not guaranteed.