Anyone with Denver Experience?

2 Replies

I spent 6 years living in Denver and loved it, ended up selling our house (stupid move) and buying a condo in a ski town to live. With that being said I am interested in potentially buying a property in Denver to use as a STR.

I understand that it is primary residence only but what does that actually mean in practice? My wife and I are living abroad for the foreseeable future and could easily declare the property as our primary but I'm not sure how to evaluate all of this. I have no interest in taking any risk of walking a grey area or stepping over the line. I'm just curious if I can buy the property and have it as my primary residence on tax returns but not live there for the near term future as I am overseas.

Anyone currently running STR(s) in Denver and have any insight on this?

@Matthew Doyle - I have had a few short term rentals in the Denver area. They are pretty strict about it being your primary residence. You, however are definitely in a "gray area." If you do not feel comfortable walking in that gray area, I would think about just doing a traditional rental. 

About a year ago, I got caught on one of my short term rentals not being my primary residence. The consequence was a slap on the wrist and they made me take it down. However, some people have been charged with felonies for it. The ones charged with felonies were not in a gray area, they were blatantly doing it while living down the road in their own home. 

If you want to purchase a property with large returns, I would recommend doing a single family property and renting it by the room. If you want the ability to return on a whim, I'd suggest doing month to month leases for all of your tenants. 

If you are declaring it as your primary residence but renting it out, that isn't exactly truthful.  I try not to make dishonesty the foundation of a business plan.  There is plenty of money to be had by simply doing things the right way, above board.