Ellicottville Investment property typically consists of short term vacation rentals. This is typical for ski resorts and other vacation destinations. With the advent of short term rental sites such as Airbnb, ski chalets and lake homes have become viable investment property options. The Ellicottville real estate market offers a wide variety of options.
An Ellicottville Ski Chalet or an Ellicottville Hotel?
A ski chalet in Ellicottville can host up to 14 people which would be the equivalent of 7 rooms at the Wyndham hotel in Ellicottville. In February, a hotel in Ellicottville can cost up to $500 per night. That means that a ski chalet costing $3000 a night for 7 couples might still be more economical than staying in an Ellicottville hotel.
Potential Revenue from an Ellicottville Investment Property.
At $1000 a night, renting an Ellicottville ski chalet for even 4 couples makes much more sense than renting 4 hotel rooms. In turn, $1000 a night gives the owner of an Ellicottville ski chalet $2000 per weekend. In the ski season alone, there are 14 weekends between the first weekend of January and the end of March. This gives potential revenue of $28,000. The period between December 23rd and January 1st should generate at least a 50% premium giving potential revenue of another $15,000. Everything from Sunday to Thursday is gravy as are the spring, summer and fall months.
Can An Ellicottville Investment Property be Cashflow Positive?
When looking at an investment property, there are two main ways to make money. The first is through capital appreciation. If the price of your Ellicottville ski chalet increases, you make money. The second way is through positive cashflow. If your Ellicottville ski chalet generates more income than the expenses your chalet incurs then you should have positive cashflow. It is important that you count all your expenses including financing and contingency for future maintenance of the property. One of our Ellicottville ski chalets should be cashflow positive if you generate $40,000 or more annually in short term rental income. All circumstances vary, however, and we always recommend taking professional advice before making any investment decision.