All Forum Posts by: James Carlson

Join us for a discussion on Airbnb investment opportunities. This free class explains why Colorado Springs is a wonderful place to make a lot of short-term rental profits. We know the notice is late, but we hope to see you! 

Thanks to all of you who came from Denver, Colorado Springs and elsewhere for the Airbnb Investments in Colorado event last week. Great questions, good conversation, and a few beers. Never a bad night. 

Also, @Chris Bunya

To add to what @Bill S. said about basement kitchens ... The city's definition of a kitchen is triggered by a 220v outlet intended for a stove or a gas line intended for a stove. If you had a 110v one or two-burner cooktop, I wonder what the city would say about that?

@Tim Emery  

I agree. If Denver generates enough income with Airbnb taxation, then other cities will fall in line.

In the first six months of 2017, Denver collected just under $1 million in hotel tax from Airbnb and short-term rental hosts. (At least according to the excise and license rep I spoke to at a recent Short-Term Rental Advisory Committee. And that's dealing with a lot of novices who probably don't know you're supposed to pay the taxes quarterly, so there's a chance the total could be well over $2 million by the end of the year. 

It's still a drop in the bucket compared to what all the hotels generate, but it's ain't nothing. 

Thanks for the tag, @Bill S. 

@Chris Bunya Hope you and Lavi are doing well. That's a good question. And if you're looking to house-hack in Denver for a little while (whether using Airbnb or a traditional long-term renter), it's important to know what you can do with the property after you've moved on to your next.  

In Denver, the answer depends on the zoning. (And even then, there's a potential workaround even if you're not zoned correctly.)

Single unit zoning, or SU (E-SU-...U-SU- ... etc.)

Most residential areas are zoned SU in Denver. In these areas, you can rent the accessory unit ONLY while you reside in the primary structure. (Or the inverse. You can live in the accessory unit and Airbnb the primary structure.) You can rent that as an Airbnb or long-term rental.

Two-unit or more zoning, or TU or RH

There are areas in residential areas that are zoned TU for two-unit or RH for row-house (and some even MU for multi-use). If you find a home with an accessory unit in these zoned areas, then you can do Airbnb or long-term renting while you're there AND rent both units out when you move elsewhere. 

The same generally holds true for other cities, though don't quote me on it. If you're in an area zoned for single unit, you can rent a separate space while you live there but not both spaces when you move. 

Denver workaround for SU zoning

Now, here's something interesting. If you find a place with an accessory unit in an area zoned SU, then you could potentially work around the Airbnb laws to continue renting out both units when you move out. Because Denver's Airbnb law allows tenants to Airbnb their primary residence, then you could put a tenant in the lower unit and have them get the license through the city and rent out the top. How you share profits is up to you. 

I have a buyer who is closing tomorrow on a small half a duplex that has a tiny little unit downstairs. My buyers have already sought out renters who are open to getting a good deal on the rent in exchange for signing up for the license. 

Just a reminder to everyone that I'll be talking TOMORROW about Airbnb laws and investments in Denver, Colorado Springs, and other Colorado cities. 

Catch us two ways:

1. Streaming live on our Facebook page starting sometime between 6 and 6:15. (Ooh, technology!)
2. In person at the Capitol Hill Tavern, 1225 Logan St. (Parking can be difficult, so show up a bit early.

We'll discuss what you can do and NOT do with Airbnb and where the opportunities lie. Looking to house-hack? Or just buy a hands-off short-term rental? We'll address those issues, as well as insurance products you should consider to protect yourself.

Not much to add here, but did want to throw out a vote for Denver's quality of life. Great beer, legal pot, 300 days of sunshine, and the mountains an hour away. 

Welcome @Austin Allan

Congrats on taking the step to get your license and on pursuing real estate investing. You've come to the right place. Dive in, as @Bill S. said, with the beginner's guide and drop by one of the meetups here in Denver. 

See you around the forums.

Hey @Jennifer Ward

No worries on the question. I'm assuming he means Out Of State. I think a lot of people are looking out of state for buy-and-hold properties. The investors I'm working with here in Denver are getting more creative. Some are looking for small spaces to furnish and put a traveling nurse in. Others are buying a place with a basement apartment that they can Airbnb. (That's more for people looking for a place to live as well.) And there's all sorts of house-hacking varities (a la BP's and Denver's very own Craig Curelop in this blog post).

Either way, congrats on getting out here and looking for investments -- whether in Denver metro or OOS. It's exciting. 

Hey @Melissa Nipper

We're currently working with @Drew Fein , and it's been great so far. A lot of people on here recommend here. 

Good luck!