All Forum Posts by: Olivia Caldwell-Nepveux

Hey hey!! Welcome. 

I’m based in Colorado too—Denver specifically—and I focus on helping people build short-term rental portfolios across the state. That’s the strategy I’ve personally used to reach financial flexibility, and it’s still one of the few that produces meaningful cash flow in our market at today’s prices.

If you're looking to network locally, I actually host regular events for STR investors and aspiring investors in the Denver area. We usually get a great group—mix of new and experienced folks, all of whom are building toward something similar. Happy to send you an invite if you'd like to check one out.

Also—if you're in research mode, there's a YouTube channel that breaks down STR investing specifically in Colorado markets. Just search “Colorado Airbnb Investing” and it should pop up.

Feel free to DM me if you want to connect or bounce ideas around. Always good to see more Denver folks getting involved!

Hey—great question. I’m based in Colorado too and work with a lot of investors who are in a similar spot.

From what I’ve seen—and what I’ve done in my own portfolio—short-term rentals are the only strategy that consistently produces meaningful cash flow in today’s market. I say that as someone who owns both: my long-term rental doesn't cash flow (even with a 4% interest rate), but my full-time STR typically brings in $5K–$6K/month. I focus on short term rentals primarily because that's what I see consistently working.

In most Colorado markets, long-term and even mid-term rents won’t cover the mortgage unless you’re putting a massive amount down. But with STRs—especially when set up thoughtfully in the right locations—most investors earn $25K–$50K/year in take-home cash flow from a single family that was chosen / designed well. Of course would be less with a 10% down strategy, but it's still easy to find something that will cash flow. 

The 10% down second home loan is one of the most accessible ways to get started. Rates are a bit higher than a primary loan, but the lower down payment helps you get into stronger-performing markets without needing 20%–25% upfront.

The key is choosing an STR-friendly area (Park County, Arvada, unincorporated Adams County, etc.) where you can legally operate the property year-round. I've had clients use this strategy successfully in mountain access towns, foothill areas, and some under-the-radar destinations that still have strong demand and solid returns.

I'm an investor-focused agent and STR owner here in Colorado, and I also host regular networking events for STR investors. Happy to connect, share what areas are working right now, or send you an invite if you ever want to drop by. Just shoot me a DM.

Also—if you’re doing more research, there’s a YouTube channel that breaks this strategy down in more detail. Just search “Colorado Airbnb Investing” and it should pop up.

Hey there—you're asking all the right questions. I was in a very similar position a few years ago: working a demanding W2 job in corporate finance, with limited time but a strong desire to build freedom through real estate. My husband and I started by buying primary residences in short-term rental friendly areas, staying for around a year, then moving out and turning them into full-time short-term rentals. We also have a house hack in a short-term rental friendly area that we can also use as a full STR when we're traveling—we're lucky to both be free of our previous corporate jobs (golden handcuffs no more!) and work-optional off of a small but efficient portfolio at this point. I currently work full-time with clients building STR portfolios in the Denver area, and I've seen this model work especially well for high-income buyers who want to get the most out of a single property.

With your goals and income, I'd lean toward either a STR-friendly single-family home with an ADU, or a small multifamily in a location that allows short-term or mid-term rentals. Just outside of Denver—Arvada, Wheat Ridge, and parts of unincorporated Adams—has much more flexibility with STR regulations compared to Denver proper. If you're buying within the city, your STR use will be limited to when it's your primary residence, so exit strategy matters. That's where I see people get stuck—they move out and suddenly can't use the property as they intended. My clients often buy in areas where the full property can operate as an STR once they leave, which protects their cash flow long-term. There are absolutely short-term rental friendly options in the Denver area—I personally own a few.

STR management also doesn't have to be as overwhelming as it seems. I've built systems that automate 90% of guest communication and connect clients with reliable turnover teams, so managing an STR can take less than an hour a week. It's definitely more hands-on than a long-term rental, but the income difference is significant. I have one property that brings in $5K–$6K/month, and my clients are consistently seeing $25K–$50K/year in take-home cash flow on STRs with 20–25% down. Many of them are busy professionals, starting with one strong property and growing from there.

As a W-2 earner, there are also some extremely lucrative tax loopholes specifically for short-term rentals that can honestly outweigh the cash flow—I’ve seen even extremely high W2 earners completely negate their taxable income. Just shoot me a DM—happy to go into more detail on that.

If it's helpful, I'm happy to walk through your specific scenario or pull up a map and show you where short-term rentals are friendly in the Denver area. Also—there's a YouTube channel that breaks a lot of this down in more detail, especially around Colorado STR strategy. You can find it by searching “Colorado Airbnb Investing” if you're looking to dig deeper.

You’re in a strong position here—happy to walk through strategy with you.

Short-term rental house hacking has been a great strategy for me—and for many people in my network, who are consistently bringing in $30K–$40K annually from just part of their property.

I had mine listed for about 10 months and brought in $30K from a mix of medium- and short-term stays in my basement unit in Arvada. Since it's in an STR-friendly area, I've also been able to rent out the full property while traveling, and it cash flowed even with a 7.375% interest rate. That kind of performance has been hard to match with long-term rentals, especially lately.

The biggest factor here is buying in an area where you can legally operate a full STR once you move out. That gives you a stronger exit strategy and the ability to maintain cash flow without depending on just appreciation.

In your case, I'd look at how the property performs with one unit on Airbnb while you live in the other, and then again as a full STR down the line (as long as the local regulations allow it - happy to chat more about where to look). The same property that doesn't pencil out as a long-term rental might do really well under a different strategy.

If you're exploring this route, there's a YouTube channel that goes deep on STR house hacking and investing specifically in Colorado—it could be a helpful resource as you're running numbers or narrowing in on locations. Just search “Colorado Airbnb Investing” and it should pop up.

Happy to chat more or swap notes if you're diving into this strategy—it’s been a huge lever for financial flexibility.

Hi Michael! That was exactly where my husband and I were just a couple of years ago. We both worked corporate jobs, and when we realized our Airbnb income could eventually replace our paychecks, we leaned in hard. We've built up a small but mighty portfolio that allowed us both to leave our corporate jobs, and has brought us to a work-optional state. Short term rentals have drastically changed my life for the better, so it's exciting you're considering it. 

I'm also an investor-friendly agent that works nearly exclusively with short term rental clients, so happy to chat more about the details on where to look, how to find the best options, underwriting, etc. 

A few thoughts based on what I’ve seen (both in my own journey and from clients doing this full time now):

Option 2 (second home financing) is often the more favorable starting point, especially if your wife hasn’t quit yet. You’ll get a better rate and lower down payment, and if the property is in a vacation market, you can use it for personal use and still run it as a short-term rental. Just make sure the area allows STRs with that type of financing (some HOAs or counties have restrictions - happy to go into more detail here). It may make sense to buy it and close on the property with a lower down payment first - then quit after that once it has closed! 

Option 1 (DSCR loan) is better once you've built up some STR income history or no longer want to rely on your W2s. I have a great lender who can operate on AirDNA estimates and who tends to get considerably lower rates than others for STRs - happy to connect you, just shoot me a message.

Also—don’t underestimate what a small portfolio can do! Glad you're making the switch to short term rentals - I have both long and short term rentals, and my short term rental performance is a million times better. I have one that consistently cash flows $5-6k/mo that I purchased as a primary a few years back. My clients are consistently seeing $25k-$50k in take home cash flow annually on properties with 20-25% down - a bit less than that for second home financing, but still numbers that are drastically more compelling than with a long term rental. Also, depending on the area you're buying in - my clients in some of the more mountainous areas outside of Denver have been getting concessions for rate buydowns from sellers the majority of the time. Less so in metro areas. 

Wishing you both the best—this path can truly be life-changing when you get the first one right.

Learn how building a guest house (also known as an ADU) in your backyard and renting it on Airbnb can help you generate extra income or offset your mortgage costs.

Join us for a hands-on and informative session where we’ll show you how easy it can be to build a profitable short-term rental in your own backyard. Matt Krick, an experienced ADU architect and short-term rental investor in the Denver area, will walk you through the steps to design, build, and profit from your very own guest house, along with Olivia Caldwell-Nepveux, a successful real estate investor and Denver realtor, who will share her expertise in navigating the local real estate market and leveraging ADUs for financial success.

What’s an ADU?
An Accessory Dwelling Unit (ADU) is a small, self-contained living space built on the same property as your main home. It can be a detached guest house, a garage conversion, or a basement apartment—perfect for turning into a rental!

What You’ll Learn:

• Maximizing Rental Income: How to turn your backyard ADU into a profitable short-term rental that generates steady income.
• Designing for Success: Simple, effective tips for creating a guest-friendly space that attracts bookings.
• Financing Your Project: Easy, creative ways to fund your backyard guest house without a huge investment.
• Understanding Local Regulations: How to navigate zoning laws and permitting requirements to ensure your project runs smoothly.
• Real-Life Success Stories: Hear from homeowners who have turned their backyards into income-generating properties.

Hey Tariq,

I personally have 3 properties here, 2 of which are short term rentals, so happy to speak to investing in STRs here. I am an also an agent that niches specifically to STR investment properties, so happy to offer detailed insight.

I love investing in short term rentals here - I have one that does over $85k gross a year, one that does over $75k gross a year. It has been life changing for me! I purchased both STR houses in the low-600s range. There are absolutely areas where you can beat a 10% cap rate - I see it all the time - you just need to know where to look and what types of properties perform best.

Some areas I would check out include Bailey, Arvada, Westminster, unincorporated Adams County, and many more I could point you to beyond that. The regulatory environment is the first thing you should consider when buying a STR here - it is both the worst and best part of being a CO STR investor. It is the worst because you need to understand the patchwork of regulations across the state, which can vary down to a neighborhood by neighborhood basis. This is also the best thing, because many out of state investors find it confusing and stay away, which keeps our returns much higher and wards off Wall Street investors from buying up swaths of houses, which we've seen in other markets.As an STR specialist, keeping up with zoning and regulation statewide is a huge part of my job.

I also host monthly short term rental events for local investors, monthly webinars, and I also often get furnished, turnkey off-market STR properties. A lot of STR investors prefer to sell off-market so they don't have to shut off business during tours, and I'm lucky to get access to a large majority of those deals in CO. I definitely recommend connecting with an STR community in the CO area, because it's great to meet other people doing the same thing and bounce ideas off of one another. Feel free to shoot me an email if interested in coming to one of my events - I have several upcoming, happy to shoot you an invite.

Last point I will make - while cap rate is helpful, I prefer using cash on cash return. I find it more helpful to track on my total cash into the deal (inclusive of furniture, amenities, etc), so cash on cash and monthly net cash flow are the two metrics I find are most informative when I'm looking at a purchase. 

Liv

Hey David!

I am a STR focused investor/agent. My properties are primarily in Arvada, CO, but I have a pulse on the market of regulatory environments throughout the state since I am almost entirely niched to STR investors in my business. There have been increasing issues with unincorporated JeffCo... I even have a friend who received an unfounded complaint from a neighbor (the neighbor was just against STRs, no events/parties that occurred), and now their property is temporarily banned/under review, regardless of them abiding by all rules. I'm not currently encouraging investors to do unincorporated JeffCo for that reason - they've become more strict/unfriendly over time. Still can be done, but you do run some risk of neighbor complaints, etc., more so than in other areas of CO that are more investor-friendly. In terms of the current rules, as you mentioned - updates to legislation are currently being discussed. For non-primary residences, they have to follow all of the following rules to receive a permit:

- the property must be a minimum of one (1) acre in size (designed as a precaution to disturbances)
- The building standards of the underlying zone district must be met
- Adequate parking is provided
- Defensible Space requirements are met
- Valid water and sanitation must be demonstrated
- No more than five (5) bedrooms are in the dwelling

As time goes on, they continue to become more strict on the rules listed above here, and are actively regulating it. If I were you (and you meet the items listed above), I would definitely still move forward with licensing since you already have the property. In the future if you plan to continue to invest in STRs, would encourage other areas - shoot me a DM and happy to walk you through where I'm seeing the most friendly regulations and best cash flow. 

Liv

Hey Bradley! 

I definitely have - I've done it 3 times myself, and have a multimillion dollar portfolio that gets a ton of cash flow. The only way that I've found for it to make sense financially given such low down payments, has been to turn them into short term rentals. 

You can get the best of both worlds on cash flow and appreciation by doing short term rentals once you move out, or by doing a house hack, where you rent out an ADU or separated basement rental on short term rental platforms while living in the other piece of your house. I've done both successfully! The key to understand about STRs in CO is the regulatory environment - it is simultaneously the best part of investing here, and the worst. It's the best because it's confusing, which keeps Wall Street investors out, and keep our profits high with lowered competition. It's the worst because it's pretty difficult to navigate if you don't have someone experienced to guide the way. I'm entirely STR focused as an agent as well, and work with pretty much exclusively STR investors, so I have my finger to the pulse of the regulatory environment here in a county, city, and even neighborhood basis. If you're curious, I also host monthly networking events, meetups at current house hack and STR properties, etc. where you can soak in a ton of information and meet with experienced investors who have done the same strategies. Feel free to reach out - would be happy to pass along a free invite, or pass along any other resources you may need!

Cheers! 

Hey Austin! 

In terms of networking, my group hosts monthly investor networking events, cocktail hours, presentations, etc. We get a great turnout (typically 40-50 people per event), and it's a wealth of knowledge for investors in the Denver area, and well frequented by a ton of seasoned investors. Shoot me an email, DM or text and I can make sure you get a free invite. Would love to have you - it's a great way to connect with other likeminded people! 

For property management, I highly recommend Luxa Rentals, which you can find at https://www.luxacorporaterentals.com/; there are a variety of tiers and it's a small-scale, well-priced local manager that is happy to customize the service depending on your needs. 

Cheers!