Condo & Townhome Financing in Steamboat Springs (rural), CO

Condo & Townhome investing in Steamboat Springs (rural)

Condos and townhomes are the lowest-basis way into the Steamboat Springs (rural) rental market, and the trade is that a second set of underwriting rules applies to the building, not just to you. Every DSCR condo file in Colorado runs a project review: owner-occupancy ratio, investor concentration, HOA delinquency rate, reserve funding, and any pending litigation or special assessment.

At the Steamboat Springs (rural) median of $585,000, a condo or townhome prices near $421,200, roughly a quarter under the detached median. Minimum down is 20% ($84,240), leaving a loan of $336,960. Estimated all-in PITIA runs about $3,012 per month, and that figure already carries an HOA allowance of $340/month — HOA dues count in the DSCR denominator, which is exactly why condo files that look cheap on price often ratio worse than a detached comp.

Returns and structure

Return metrics at the Steamboat Springs (rural) median for this product: an estimated cap rate of 5.58%, and monthly cash flow of $148 positive at 20% down. A file that cash-flows at the minimum down payment is the exception in Colorado right now, and it gives you room to absorb an insurance renewal without going to the reserve account.