All Forum Posts by: James Carlson

Looks like the push to raise property tax assessments on Airbnb/short-term rentals to 29% ... might be dead on arrival.

"I don’t have any particular hope or even interest in perhaps in it passing in the form that it has been introduced," Rep. Bob Gardner, a Colorado Springs Republican, told Denver 7.

I was a politics reporter for Kansas newspapers for years and, uh, that's not what you say when you've got support for your bill. STR owners in Denver and Colorado Springs and elsewhere can breathe at least a small sigh of relief. For now. But don't rest on your laurels. This idea was floated two years ago. It died. It was introduced again this year. It died. You could say it died twice. But you could also say it was introduced twice. Someone wants this bill passed, and you never know when the public tide turns. 

I think this is a concern for anyone doing anything creative in real estate. Are you house-hacking with five roommates? Are you renting a basement apartment medium-term to traveling nurses? Who knows when a legislator who's scrounging for new revenue, turns to your investment model as the piggybank. 

@Jessica Franco

Up front, I'll say that Denver doesn't really have any war zones where you're going to feel super unsafe. That said, here are what I consider the best Denver neighborhoods to stay:

Highlands
Old victorian homes in a quiet safe neighborhood with 32nd street shops and bars/restaurants nearby and close to LoHi and downtown night life

LoHi
Just over the bridge from downtown. Lots of bars/restaurants here but still in a neighborhood vibe.

Capitol Hill
A neighborhood of old mansions and big condo buildings. Not as crazy as the LoHi, but still plenty of bars and restaurants (like on 7th between Sherman and Pennsylvania). And a great park on the eastern side in Cheesman.

RiNo/FivePoints
Larimer Street is a hip industrial newer section of town. Very cool. Very hipster/Brooklyn-ish. I feel safe around here, but depending on where you're from and what you're used to, it can feel seedy in parts because of the proximity to the homeless shelters. (But then it's also got some of the highest priced real estate in town. The paradox of a modern city.)

Washington Park
Well-to-do types in old remodeled bungalows and the occasional scrape and build of a modern monstrosity. Close to Gaylord street shops and bars/restaurants. And close to Wash Park.

@Alex Brown

Ahhh ... a little ego stroke on a Tuesday. Great way to start the week! Thanks for referencing our video. Obviously, we work in Denver and Colorado Springs, so your city's situation may be different, but here are some general thoughts:

1. The city worker could very well be correct. City codes are set up in two ways: 1. Anything not specifically outlawed in the code is therefore allowed; or 2. Anything not specifically allowed in code is therefore NOT allowed. Clear as mud? Sounds like your city is the latter.
2. In my experience, most lawyers aren't familiar with the minutiae of city short-term rental laws. I'd email your city council person and ask for clarification. Ask them if they can clarify with the city attorney's office. Or you might just try the city attorney's office and see if they'll issue you an opinion.
3. A cease and desist order could come for any reason but is more likely going to be a noise or parking issue. If you keep the number of guests to a minimum and try to screen against potential party planners, you have a better shot at not getting caught. I say better because it all depends on your neighbors. Are they nosy? Are they the type to think Airbnb is the bane of our modern existence? Young or old? 
4. What to do? GET OUT IN FRONT OF THE ISSUE! Start a local Short Term Rental Alliance. Get it on Facebook. Reach out to anyone and everyone else you can who is doing STRs/Airbnbs. Gather data. (For instance, does the city have complaint data broken out by STR guests? Probably not, but ask. And use AirDNA to see how many STRs are in the city. You want to have the data when the other side starts spouting scare tactics like "STRs are overrunning the city!" Well, you'll have the data to say, actually STRs account for less than 0.5% of the housing stock, or whatever it is. And start getting in front of city council members, expressing your opinion that STRs are not the devil.
5. Good luck!

@Arnel Bueno

There are definitely still some multi-unit investments that will cash flow in Colorado Springs. You just have to be patient and diligent in your search. A few questions:

• Do you live in Colorado Springs?
• If you live here, do you already own your primary residence or will this be your first real estate purchase?
• If it's your first, are you looking to house hack this property? House hacking -- either with a rent-by-the-room model, short-term renting/Airbnb-ing a separate basement, or a traditional duplex/triplex/etc. house hack -- is a great entry into real estate.
• Have you talked to a lender yet?

Cash flow in Colorado Springs -- like everywhere along the front range -- is not like in the midwest. But it also has what the midwest does not -- great potential for appreciation over the next 15 years. 

@Jessica Franco

A premature welcome to Denver. It's great here. Proximity to the mountains, 300 days of sun, great beer, legal weed, arts, culture, bars, restaurants, parks ... I could go on. Too many investors I know with STRs and Airbnbs to mention. 

As to the best things to do while visiting Denver, here's my list:

Explore the arts/museums

• You just missed the Monet exhibit at the Denver Art Museum, but check out the Denver Museum of Nature & Science. They've got a fund "science behind Pixar movies" exhibit right now. Be sure to check out the back patio of the museum and look west for the best photo/view in Denver of the skyline and mountains.
  
• For a more raw arts experience, check out Denver Graffiti Tour, a 2-hour waking tour of the best street art in the RiNo Art District. You'll learn about a different art form as well as an exploration of what's happening -- good and bad -- in one of Denver's hottest neighborhoods. 
• Afterward, grab a drink and food at Denver Central Market to get a flavor of one Denver's many food hall concept. Or try wine and tapas at Barcelona. (Ssshhh, don't tell anyone its a chain.) Or beer at any of the local breweries there -- Epic and Our Mutual Friend are solid.

Explore the outdoors

• Red Rocks Amphitheater is a cliche for a reason. It's so pretty. Hike the trails around the venue and then be sure to take a gander inside the venue as well. (Or, if it's not snowy, get your stairs on inside the amphitheatre.)
• Walk a park. My personal favorite is Cheesman Park. There's a 1.3 mile crushed gravel trail around the perimeter. It's a beautiful walk. Afterward, grab a beer and pizza at Wyman's on the northeast edge of the park and a scoop of ice cream at Lik's next door. (Washington Park is great too, but I like Cheesman better. A little more neighborhood feel.)

Explore the neighborhoods

We have more than a few great neighborhoods with mixed-use areas. 

• Try Baker/South Broadway (or SoBo for the acronym-obsessed). Shop the best used-clothing store in Denver at Buffalo Exchange or some hipster overpriced (but cool) clothes at Fancy Tiger. And Decade is a great little boutique gift shop. Mayan Theatre is a cool old movie theater showing indie movies and serving alcohol. Metropolis Coffee will fill your caffeine needs. And Atomic Cowboy for New York Style pizza or Illegal Pete's for that rice/bean/meat burrito or Go Fish for sushi will be a good lunch/dinner. And pick up a donut at the funky Voodoo Donuts. And too many bars to mention. Historian's Ale House and Canopy are my faves.
• Other good neighborhoods for shopping/eating. Cherry Creek North is the high-end area. (You'll see Hermes, etc. here). The Highlands (specifically 32nd street) has some good bars/restaurants and a few little shops. So do Tennyson Street in Berkeley. 

Miscellaneous

• If you like the food hall concept, Denver Milk Market is the best.
• Snooze is the best breakfast/brunch in town. Go to the Union Station one. Because Union Station is beautiful and to be experienced on its own. Expect a wait, but they have free coffee while you wait and then you can peruse books at Tattered Cover across from Snooze or just wander the great hall of Union Station.
• Not sure of the exact day you're coming. 

Okay, I've got to stop. I could go on for days. 

Have fun!

@Zach Crews

We work with buyers in Denver and Colorado Springs, so Colorado might be different than North Carolina. That said ... You're likely signing mortgage paperwork at closing that says you shall occupy the home within 60 days. At least in Colorado, we have a standard contract called a post-closing occupancy agreement that you can sign with the seller. It says you won't take possession for anywhere from 1-60 days after close and that you'll charge the seller "rent" for staying in this place. (Or in this instance, their tenants staying in the place.)

You can also just make sure that any and all rents that are acrrued not just actually collected are credited back to you at closing and you can then take over the lease.

The big question, though, as @Nathan Gesner said, is the terms of the existing tenants' lease. If their lease doesn't end until after that 60 days, then you have an issue. You can't kick them out legally and you have to move in or commit mortgage fraud. There's always a solution, so get with your agent and the other agent and figure it out. Maybe you throw $500 toward the tenant to get them to agree to move out early. 

Good luck!

@Cameron Calvert

Sounds like a great property Whether it's a good house-hacking opportunity for you or too big a bite is really up to you. I have the same questions as everyone else. 

• How did you find it when no one else did? Are you including all costs (capX, repairs, utilities, cable/internet, etc.)? 
• Are management costs included in that? Here in Denver and Colorado Springs, an Airbnb management company charges 20% minimum for short-term rentals. (More like 40-50% in the mountain towns like Breckenridge and Keystone.) 
• And always, always have a plan B. What happens when the STR market floods and you see price compression? What happens when you get tired of scrubbing a toilet every third day and need to start paying that property management fee?

We've had decent luck ourselves and with our clients transitioning Denver STRs into medium-term rentals when the situation demanded it. So that's always an option. 

I don't mean to discourage you. Just go into it with open eyes. Good luck!

@Bo A Vanecko

@Drew Fein is a Denver real estate attorney who's on here a decent amount. You might reach out to her. 

@DeAndrea D.

Kind of on the same page as @Steve K. In a hot market like Denver, long-time residents have seen their property value go up. (Great!) But with that comes investors knocking on their doors and sending them letters. And up in the ether, just floating around in the collective conscious of some communities, there is a sense that investors are vultures and are part of the changing of their neighborhoods that they have lived in for decades. It's not always true, of course, but I think that idea is out there. 

@Manuel Perez

We've used @Tyler Howell with good success. Responsive, professional, competitive rates for a property manager in Denver.