All Forum Posts by: James Carlson

@Brandon Guite

Thanks for sharing the numbers and congrats on taking a step into the REI world.

It sounds like you're posting not just to start a discussion but also to get a feel for whether you want to invest there. As always, ask yourself what your goals are, whether Colorado Springs fits those goals and then find people who understand those goals and can help you get there.

We like Colorado Springs because you can cash flow, and the city seems to have strong appreciation potential. Plus, my business partner (and wife)  like that the Airbnb laws in Colorado Springs are wide open for short-term rental investors. We're personally looking down there and are working with client-investors there as well. 

Now, if you're all about the numbers, and you're willing to go out-of-state, the midwest seems to be a good place, but a lot of people want to stick close to home. Colorado Springs is a pretty good choice, in my opinion. The city is getting a lot of spillover from Denver, has a more diverse economy than it used to, and is not as lame as it used to be. (This coming from a Denver urban snob.)

Good luck!

@Ryan Wilson

Congrats on taking the leap into real estate here in Denver!

I think it's important to ask yourself what you hope to get out of an agency. Training? Okay, then I'd go for a big agency, like Keller Williams. But I think what a lot of new agents think they will get from their agency is help finding clients. From what I hear, there's really no agency that will give you meaningful leads, so that's not really a reason to choose a big company.

This may not be a popular idea but I do not think this or that agency make a difference. Creativity, hustle and one good mentor will do the trick, in my opinion.

We went with Brokers Guild. It's just $25/mo and then $200/transaction. Now, you better be ready to train yourself and market the hell out of yourself. We felt confident that we had nailed down a niche that would drive clients to us, so we didn't want to give away our money just to have a big name behind us. (We've created our own brand underneath Brokers Guild anyway.)

This isn't really what you asked about, but I will just reiterate that I think hustle is the key to this. There are something like 21,000 real estate agents in Denver alone. How are you going to stand out? How are you going to get clients? You can do it, for sure, but start planning now. Cold calls are fine. Door knocking is fine. But ask yourself whether you have the stamina to do it over and over and over and over? Because that game is all about volume. If you do have that type of personality, great! You will do well. 

If you don't have that type of personality or stamina -- and I freakin' hate that type of sales -- then find other ways to get in front of people. Host Meetup groups with activities that you enjoy. Run free homebuyers classes. Find a niche, build a website and produce great content to drive eyeballs to your site. And stay active on here.

Anyway, I really wish you well. Good luck.

@Luke Carl

Great idea. We'll get on that for Denver, Colorado Springs and some other Colorado cities whose Airbnb markets we know. And uh ... you seem as good a person as any to do that report for Nashville.

@Andrew Hove

Congrats on being under contract on your second place! As Myka said, I'd call your CPA. That said, when we were doing Airbnb full-time at some properties here in Denver, we just listed it as rental income just like any other kind of rental income. 

@CP Chou

I'm glad you established where your basketball loyalties lie. That's key to weeding out the wrong agents.

I'm not in San Antonio but just giving a little self-indulgent plug for seeking out an agent with STR knowledge if you plan on buying to rent as an Airbnb. I know here in Denver and in all of Colorado, there are a lot of ways investors can get mixed up if they don't know the Airbnb laws in their city. (Colorado Springs is wide open, for instance, Denver is much tighter, and Boulder is like a steel trap. The rest of the cities are all over the map, no pun intended.)

Anyway, good luck!

@Amy Zemser

Congrats on taking the leap and making those calls! The first ones are the hardest. Once you get over that and you get your pitch down, it's not as scary as it seems.

You might PM @Tyler Work . He's doing some version of master leasing properties here in Denver to re-rent on Airbnb. 

Hey @Nick P.

Thanks for posting. (We're probably Denver neighbors. My wife and I live at 8th and Clarkson, and we own two other units in Capitol Hill.)

So you're running these numbers as if you were to move out, buy another property and turn this into a full rental? Is that right? I'm assuming your expense numbers are correct. The only variable will be that rent. $1,850 is not out of the question for a 2br in Capitol Hill, but there has been some depression of rents in the area in the last year. Knowing whether you can get that depends on your exact location, the aesthetics of your interior, whether there's parking, and the other amenities in your building. 

I guess I'm thinking your cash flow isn't great, and it would be nice to get into something else. That said, with your down payment, I'm not sure you'd have the equity in the home to make it worth it. If you sold, your profits might get eaten up by closing costs and agent commissions. Have you talked with an agent about what your place could appraise for (if you end up doing a refi) or what it could sell for (if you end up selling)?

I'll just reiterate what @Craig Curelop said. Technically, lenders can't count Airbnb or short-term rental income, but when it shows up on your tax returns,  it shows up simply as rental income. Our lender said the same thing. If he sees rental income, he counts it and doesn't go asking questions about whether it's Airbnb rental income.

@Jenessa NeSmith

Jump in! You'll likely make a few mistakes along the way, but that seems like a pretty great way to learn. I love the podcast "How I Built This," and so many of the self-made entrepreneurs interviewed often come upon an opportunity before they're totally prepared. They dive in, fake it till they make it, and -- it turns out -- they always seem to make it. 

Maybe do enough research to feel confident in talking to your neighbor about your fee structure and exactly what your services look like. 

So exciting! Congrats on the opportunity.

Thanks for posting, @Billy Smith . Dogs are as Colorado as sunshine and beer, so it's not surprising that this is being proposed.

Setting aside the philosophical question of whether the legislature should dictate anything on this issue, I think @Scott Trench is right. Allowing dogs expands the pool of tenants, and the extra money you can charge is great. We allow dogs in our furnished rentals and have never had a problem. 

Now as soon as I say that, some dog is going to piss all over our couch, I'll keep the deposit, and the tenant will go to 9News and cast me as a dog-hating landlord villain.