1.3 million people visit the broader Avon area (Vail and the rest of the valley) each year. The little town is the gateway to Beaver Creek Resort, and with about 6,500 inhabitants has small town charm and plenty to do. The “Heart of the Valley” also has numerous active Airbnb listings and with an ADR just north of $460, it’s a strong investment.
Can you AirBnb an Investment Property in Avon?
With so many towns restricting short term rentals, the laws are the first thing to look at. The good news is YES—you can have an Airbnb investment property in Avon. Almost all of Avon is covered with an overlay zone district, and several Planned Unit Development (PUD) areas permit short term rentals as well. For the rest, you’d have to apply for a PUD amendment. Check out Avon’s website to see the boundaries of the district.
Are vacation homes a good investment in Avon?
Research site Airdna rates Avon an astonishing 97/100 for investability. And the site is by no means always in favor of short term rentals…it suggests you could LOSE money investing in Miami Beach or Palo Alto, and lists several other bad fits for Airbnb as well. What makes Avon such a good investment market is the fact that the relationship between house price and average daily rate is so favorable.
ADR can vary by property but we’ll use $460 which is about average for all properties. A lot of properties on Zillow are in the $620,000 range. At a 20% down payment (sorry, but since you’re doing rentals you can’t get the same low down payments as you would with a primary residence), you’re shelling out $124,000. With a 3.92% interest rate and a 30 year term, you’re also paying $2,345 a month. Let’s call it $3500 because you need to pay for insurance, taxes, utilities, and maintenance.
You’ll have that property paid off if you rent it 8 days a month! Call it 9 or 10 to account for housekeeping and minor Airbnb fees. If you rent it just half the month, or 15 days, you’re profiting $2,300 a month. $27,600 on a $120,000 investment is an over 20% return. Plus you can vacation for free whenever you want and at the end of it all, you’ll own the home free and clear.
How do I Invest in Vacation Rental Property in Avon?
Go to Airdna and run the numbers. Go to Zillow and see if it’s zoned. Move fast, because houses move fast. Hire a realtor, fly to Avon, fight through the market, learn to list it…
Or call us and we’ll do it for you. Up to you.