All Forum Posts by: Bill S.

@Holly Radice so I own in Barnum but do not do any STR as I don't live in the area. You should look at AirDNA for information about short term rental in the area. Personally I consider it to be more of a entry level neighborhood for first time home buyers and a blue collar neighborhood for long term renters. My wife (she picks all our STR stays) would not rent a STR in that type of area in any City but we are not everyone so take that with a grain of salt. As @James Carlsonsaid, there are a lot of legacy unpermitted "improvements" to properties in the area. I haven't seen the City crack down on unpermitted work with regards to a LTR rental license but that doesn't mean it won't be an issue some day.

@Justin Sherman your best bet for cash flow is to go with a STR in the upper part of your house hack. If you live in the basement then you can legally STR the top in most areas. That is the only way I have seen most deals work these days. If you buy a very large (many bedroom house) the rent by the room also will cashflow. Now days you don't buy a deal you make the deal either with how you operate the property, how you finance the property, or how you purchase the property. Works best when you can pull multiple levers to make the deal.

@Kevin Bartel Yes Aspen is a VHCOL area. Are you living in Aspen now or are you commuting from down valley? I am sure the further West you go the more likely that you can make a house hack work. It really depends on where you want to take your real estate investing. Syndications are a very hands off (after all the work of vetting the GP and deal are done) of investing. Very repeatable and much less time intensive than actually owning the real estate in most cases. If you want to actually own the real estate (some of us like to be able to see and touch what we own), then start with a house hack. The area you are in is very good for appreciation. My extended family has done very well (10s of millions of dollars in equity growth over the years) with real estate in that area. 

@Dan DeGroff you are over valuing the access to foreclosure listings. They are few and far between. All those with equity are scooped up by investors or sold by those being foreclosed on before it is finalized. My family just sold a property in Aspen. The price of real estate there is off the charts and completely insane.

@Steven Mendiola

So Colorado just passed a law this year taking the local limits cities were placing on people related to the number of unrelated people living together so no need to worry about that issue.

Make sure your lender is on board with the purchase price and DTI ratio you are proposing. The best house hack deals come from those who add rooms to the property but it sound like that maybe a bit out of your wheelhouse.

Make sure living in the trailer is something allowed by the powers that be. Ie HOA, city or county. Do NOT try and sidestep that by thinking no one will care. At some point, someone will care and it will hurt you.

@Heather Schneider my thought is that you will be disappointed. They will take advantage of the fact that your plates are green and will resent you at the same time. Prices are cheaper but so are rents. It is a good Ole boy system and they take care of their own before serving you. I know this because my wife's family lives there. I grew up in the area and still have family there as well. We have invested there a few times. We don't currently own anything there and don't plan on doing so in the foreseeable future.

The positive is that the landlord tenant laws are much more landlord friendly.

@Michael Smythe

Let go of it (the house) emotionally. Tenants will never treat it like you do. Remember they are tenants for a reason. After that, consider the advise given above carefully. I would say an agent who is a property manager should always say hire a property manager or they should not be in the business. A good property managers saves you their fees. An average property manager will cost you more than their fee but you should be able to make money with them. A bad property manager is worse than a bad tenant because you will likely end up with a bad tenant as well.

@Jasper K Juhl so I looked into this and talked to a few operators. My take is that it is a business with a real estate component. My determination was a good operator was the key. After that, marketing as was pointed out above would be mandatory.

@Thomas Biberacher Canvas does and so does Vectra Bank but they also have higher equity requirements and other overlays that differ from what you would get on a primary residence.

@Eric Burger so I have not viewed the current BP lease for Colorado so I can't comment on that. At one point when I was crafting my own lease, I bought it and carved out a couple of the clauses I liked. Since then there have been many changes to Colorado landlord/tenant laws and as a result, I bought a local attorney's lease (actually a fairly large law firm). This firm specializes in representing landlords doing evictions in Colorado and probably does 80% of all evictions in Colorado.

Sure, doing the first "year" as an 11 month lease might help address the new tenant in perpetuity but after the first 12 months they are your tenant as long as they want to stay (with the exceptions allowed by the law). If someone thinks they can write a 2nd lease with that tenant for the same property for another11 months and still non-renew them at the end of their 2nd term, they are mistaken according to the above referenced law firm.