Investing in Telluride, CO — Market Analysis
Telluride is one of the most regulated STR markets in Colorado, but permitted units command $600-900/night with 70%+ occupancy — DSCR investors prioritize STR approval before acquisition. With a median home price of $2,400,000, acquiring a rental property in Telluride requires a minimum $480,000 down payment for a DSCR loan (20% of purchase price) or $600,000 for a conventional investment property loan (25%). At current DSCR investor rates around 7.5%, your estimated monthly payment on a $1,920,000 DSCR loan is approximately $13,424 in principal and interest, with a total PITIA (including taxes and insurance) of approximately $15,224/month.
For a long-term rental strategy, Telluride properties at the median price point generate an estimated $7,700/month in gross rent — a gross rent multiplier of approximately 26.0x. After accounting for all operating expenses including vacancy, property management, maintenance, capital reserves, taxes, and insurance (typically 35% of gross), estimated net operating income runs around $5,005/month. This produces an estimated cap rate of 2.5% and an estimated monthly cash flow of $-8,420 after P&I on a DSCR loan. The LTR DSCR ratio of 0.51x reflects the premium pricing in Telluride relative to rents — common in appreciation-driven markets. Most investors here pursue STR income, portfolio/blanket lending, or no-ratio DSCR products that don't require a minimum DSCR.
Short-term rental is an active strategy in Telluride. Based on typical occupancy and nightly rates for this market, a well-managed STR property could generate approximately $13,100/month in gross revenue. This produces an estimated STR DSCR ratio of 0.86x — still below DSCR minimums at standard rates — larger down payment or no-ratio product needed. Note: DSCR lenders that accept STR income typically require 12-24 months of AirDNA or VRBO data, or a signed lease agreement from a property management company projecting annual revenue. Estimates above are for illustration only — actual performance depends on property location, amenities, and management quality.
San Miguel County's high-balance conforming limit of $994,750 means DSCR loans up to $994,750 at 80% LTV qualify for Fannie Mae/Freddie Mac-eligible investor pricing — typically 0.5-0.75% lower than true jumbo DSCR rates. For Telluride investors acquiring properties in the $1M+ range, confirming whether the transaction stays within the conforming limit significantly impacts the rate and investor pricing tier.
Tayton Capital finances investment properties in Telluride across all major product types — DSCR, conventional investor, jumbo, and portfolio — with no limit on the number of properties financed. We close investment transactions remotely, including LLC vesting and title coordination.