All Forum Posts by: James Carlson

@Andrew George Dennis

You know, I used to make everyone go through a background check. But now I don't. Is that smart? Probably not. But because all of our tenants seem to come through Airbnb now, we have treated them like any other Airbnb guests. That is, we look at their reviews on Airbnb and see how they are. We do still make them sign a lease with us outside of Airbnb. And we make sure to disclose that to them before they book on the platform. 

Welcome to BP, @Brock Stoker

Sounds like you've got a good start going. Awesome to hear. We turned our first home (a small condo) into our first rental as well. We're up to four doors now (and under contract on a fifth as we speak). It's exciting to see the homes accumulate.

What's next for you? You buying in Denver? Colorado Springs?

@John Akolt @Parker F.

You're both talking about creative ways to address Denver's primary residence rule. In general, you should know that everything I hear at the city's Short-Term Rental Advisory Committee is a move toward stricter enforcement. That's just a general statement to start off.

You both seem to be talking about the provision of the current Denver Airbnb law that allows tenants to rent out their unit. I have a client who I helped find a place with a basement unit, they rented the basement to someone for below-market rent and then that person got the license and added the owner as a co-host. It works great for them. (But again, I point to my initial comment to say, who knows how the city will react if enough people start to do operate in this grey area of the primary residence provision.)

And Parker, to your specific business model, Denver only allows one short-term rental in a property. You can rent out more than one room, but they both have to be rented to the same party. (By the way, I'm doing a presentation about the Airbnb laws in Denver and Colorado Springs next week if you're interested.) Also, any downtown condo is likely going to have an HOA prohibition against Airbnb.

I don't mean to discourage either of you. Just be sure you know the laws and the possible consequences before diving in. Cheers. 

@Jack Plantin

That's a great question. But in your situation, I agree with @Jordan Moorhead. Buy in your hometown. We run into this all the time with clients in Denver and Colorado Springs. They're both hot markets so sometime first-time homebuyers think they should invest out of state first. Admittedly, I have a dog in the fight, but I also truly believe it when I tell them that their first "investment" should be their primary residence, even if that's a small condo. 

Anyway, good luck!

@Andrew George Dennis

In our furnished medium-term rentals in Denver, I've seen between 25-40% more than what you'd get for an unfurnished 12-month minimum rental. (I couldn't quite tell whether you're furnishing the place, or if you're just doing a 30+ day unfurnished rental. If it's the latter, then the above percentages are probably high.

@Craig Curelop 

Is it your property north of City Park? That will do quite well as a medium-term rental. We've had a few small medium-term furnished rentals in Denver, and I've tried all the sites that you mentioned. Truthfully, I get by far the most responses through Airbnb, just by setting the minimum stay to 30 days. I've started experimenting with Facebook Marketplace and am getting some decent hits. But I'll say that the last four tenants (between 3-month and 6-month stays) came from Airbnb.

I think if you have a really high-end property or a property near DTC or Denver's business district, Corporate Housing By Owner might be an option. I know one person who's had success with that, but it was a nice high-rise condo on 17th by all the law firms, so CHBO attracted more of that type of crowd.

Good luck!

@Justin Makkay

So is the city in which you land here in Colorado dictated by the market? If so, Pueblo seems like a good play but I think most people of a certain age are not going to love living there when you've got cooler cities north.

I tell our clients to make their first investment their primary residence. If you're moving to Denver or Colorado Springs, I'd buy there. Yes, they're both hot, but you've got to live somewhere, and I think you should own that place. Plus, you can find a place that still offsets your mortgage through house-hacking or actually cash flows. 

I wish you luck. Cheers!

@Daniel Dixon

There are certainly a lot of options for basement units, whether you're looking in Denver or Colorado Springs. Just how many options you have depends on other factors, like your budget and whether you have a particular area you want to be near. (My wife and I are actually under contract on a place like this in Colorado Springs ... fingers crossed). So yes, you can totally do that. 

Another option is to find a 4br or 5br single family home and rent out by-the-room. We've had clients looking out by the Fitzsimons medical campus where a lot of development is going on and you have nurses/doctors coming and going.  

Then you got to think about what kind of rental you want those to be. Airbnb/short-term rentals? Medium-term furnished rental? LTR?

Takeaway: You've got options. Good luck!

A question for any Denver real estate agents out there or any agents in general. (Or heck, any buyers/investors who know a thing or two.) I have a client who is about 33% through a remodel on a home. Without going into details, they are considering selling and moving on. (Nothing was found during the demo. No issues with the house. They just had a problem with the contractor and they are considering just making a clean break.)

My question is about pricing and selling a home like this. What factors do you consider when pricing a home that is in the middle of a remodel? 

FYI, the remodel would finish off the basement adding an extra bedroom and living room space plus laundry area. The upstairs had plans to push back the entire back of the house to open up the kitchen. 

@David Carrasco

Welcome to BP and a premature welcome to Colorado Springs. As @Michael Vialpando said, house-hacking is a great way to have a rental but also a primary residence. But yes, the little ones will make that a more perilous proposition. What about a home that has a separate entrance to a basement that you could lock off? Then you can Airbnb or short-term rent the downstairs, also keep the renters separate from your family, and you still have a nice little single-family home that would rent well when you move on in a few years? (Plus, you would still be within the rules should Colorado Springs decide to limit non-owner-occupied STRs.) We have a few clients who've done that, and you don't even have to have a kitchen down there to be attractive to visitors. Just a thought.

Anyway, I wish you luck. Colorado Springs is a beautiful place. Cheers!