All Forum Posts by: Jason Henning

Yeah @James Carlson, the taxation piece is definitely a consideration. I can ask our accountant. I was thinking too from a liability standpoint as well so I suppose I should be asking that of an attorney. And then there's insurance... so I'll ask my insurance agent. Looks like I won't be going through Denver's STR Licensing steps today ;)

We're starting the process for getting our Airbnb going, so we need to jump through Denver's hoops. Out of the gate I have a question... Do we register for the Lodger's Tax ID License, STR Business License, etc. as a business or personal (sole proprietor)? If it's as a business we'd have to go through the added steps of forming a business entity first of course. But Denver only allows one STR so is it worth forming one? Pros, cons or what's the standard route?

Thanks so much @James Carlson!  As we've brewed this one we've modified it because I think you're right that it could make for a big pain in the rear.  I think we are going to scrap the Fall/Winter/Spring backyard camper idea but still pursue the summer Airbnb-ing of our primary residence.  I'm planning on attending the next STRAC meeting to learn more as we put our plan together.

yeah @Matt M. definitely a big consideration there.  they do make portable tanks, but not ideal.  I've looked for removal services but can't find anything for Denver.  for sure that's a big one on the con side of the pro/con list.  I have thought about adding a carriage house from time to time.  Being zoned U-TU-C we already have 2 units on our property.  I suppose we could take over the whole main house ourselves and then add the carriage house as a rental.  that's worth digging into as well.  thanks!

Great @Tyler Work!  I have it on the cal and will definitely try to make it.  Thanks so much!

Thanks @Tyler Work  We're zoned U-TU-C so allowed 2 units but we do have a long term tenant in our garden level 1/1 rental.  Definitely worth digging into it further though.  Are the STRAC meetings open to the public or do you have to be a member?  and thanks as well @Michael Guzik  Denver has become pretty strict with STRs but I think you're right that as long as we're properly licensed and paying taxes accordingly we should be okay.  Just need to keep learning the rules so we can play by them.

Here's the vision: the idea is to put an Airstream travel trailer (a camper) in our backyard and rent it out on Airbnb during the Fall, Winter and Spring. Then in the Summer hit the road with the Airstream and rent our house on Airbnb. Is it possible to make this work legally in Denver? I know in Denver a property can only have a single Short Term Rental (STR) license, but can that license oscillate between the house itself and essentially an auxiliary dwelling unit in the camper? Thoughts? Other considerations?

Thanks so much @Bill S.   That's really helpful with pitching the seller financing.  Makes even more sense to me but selling him on it will be tough. He's an older gentleman and quite set in his ways as you can imagine.

So, I did end up taking him out for coffee and have more details on what he's looking for in his deal. I reiterated my interest in his properties and let him know I'd do what I can to help him. Will definitely be staying in touch with him and if he comes up empty handed on his NNN perhaps he'd be more open to seller financing. Especially if I can present specifics on what that would look like for him. to be continued...

Thanks so much, @Winston Parks and @Dave Foster. I'm hearing you both. A change in his ownership would jeopardize his ability to 1031. Based on our call, I think his attitude and comfort level toward making any moves prior to finding his NNN is a non-starter. However, I think you're totally right that I can assist by helping him find his property first. I think my next move will be that cup of coffee and finding out his target parameters for the NNN. then go to work and help him find it. Thanks again!

Hello BP.  A local investor in Denver with whom I’ve spoken on a few occasions mentioned recently that he has three residential properties he wants to unload.  He's looking for a commercial triple net lease. He feels he’s getting too old to manage tenants and residential properties. Cut to…

My wife and I have house hacked since 2013. Our home has a separate 1/1 so we have some experience in managing tenants and all that comes with it. We’ve recently committed to building our real estate portfolio with the goal of building our passive income. I found BP, been devouring the amazing podcasts and resources, went to a local meet up and am beyond inspired and motivated to take action.

So, I called this investor to see if he still has the 3 properties. He does. He has a duplex and two singles. I told him I’d be interested in discussing if we can come up with a deal for us to acquire his properties so he can find his triple net lease.

He said he wants to 1031 exchange the sale of the properties for a commercial property. He wants a 15-year triple net lease with a national tenant. He wants to find this commercial property first, before selling, because of the timing constraints for the 1031 exchange.

I asked if he’d be interested in seller financing the deal in the short term so he could make money on his money and avoid the headaches of managing his properties and tenants. I could then begin to improve the properties and get financing in place for when he’s ready to cash out after finding his triple net lease.

He wasn’t interested because he thinks I’d never make it paying him 6% for the financing. (Hmmm, 6%, at least in the short term, wouldn’t be too shabby.) “Why would you pay me 6% when you could get 4% from a bank?” I said, maybe a bank wouldn’t finance the deal. “Well if a bank wouldn’t give you a loan why would I?”  Anyway…

So, I’m looking at this as two investors with separate problems: He has residential properties to sell and wants to 1031 them into commercial… and I want residential properties.  If I can find a solution to solve them both, it could be a win-win.  Only if it's a good deal, of course.

I’ve got decent rapport with him so have no problem reaching back out if had some options or ideas to present.  Will probably offer to buy him coffee or lunch just to pick his brain and get to know him better anyway.

Thoughts on what my next move could be here?