All Forum Posts by: Tanner Crawley

@Ross Bowman
@Yourri-Samuel Dessureault

I would love a detailed write-up/ case study. I have a few spaces where this might work.

@Seth Wilcock

Tell me about the MF financing options. I'd to finance an owner-occupy fourplex but self-sufficiency requirements are challenging here in Denver.

@Jacob O'Malley
Colorado
Colorado, in general, is a good choice. It was the 6th fastest-growing state with nearly 15% growth from 2010-2020. We have the third-lowest property taxes and reasonable income tax. Colorado also has great economy and incredible lifestyle.

Denver
I don't see any reason why Denver should be out of your budget with your income. There are plenty of great townhomes in the $350,000-$425,000 range that you should be able to qualify for. 

I prefer these units anyways as they usually have a much higher rent/price ratio and no landscaping needs.

You also can qualify for a $17,500 grant to cover the down payment and closing costs with no mortgage insurance which should help you with your cash flow. 

Aside from the performance of your assets,  I think being in Denver which is obviously the economic hub can bring you a lot more opportunity, especially in real estate. 

Colorado Springs
Colorado Springs is nice as well. I would buy something in the SW shoulder of downtown. There are a lot of recent catalytic developments going on there (soccer stadium, Olympic museum) and there could potentially be big changes in the future (demoing coal plant). That area is also an opportunity zone which is a pretty strong incentive for developers. 

Tertiary cities seem to have a favorable macro environment too.

Others
As others have mentioned there are plenty of other options. CS and Denver are definitely my personal top two but I don't think you can go wrong in Colorado as long you are along the I-25 Corridor between Ft Collins and Pueblo.

@Trever C Trader

Just be aware that four-plexes financed with FHA (even if owner-occupied) are subject to self-sufficiency tests. Seventy-five percent of total income must cover total PITI.

(Total Income*75%) / (principal+interest+taxes+insurance+mortgage insurance) must exceed 1

This should be doable in high cash flow areas but can be challenging with small down payments.

Denver doesn't allow STR under 30 days unless it is your primary residence, you could buy a top/down with a lockoff and STR one of them.

@James Carlson can be your resource if you are looking for areas that allow STR.

Would you be willing to share the contact info of that builder? I would owe you one bigtime if it works out.

Any chance you would be willing to share contact information with me? I'll buy you a drink!

@Kimmy G.

No you couldn’t get the benefits for several reasons. There must be substantial improvements made (doubling building value). You also must make the investment after the OZ legislation has passed.

@Terrence Burwell

Welcome. There are alot of good spots in Denver. I'd have to ask your criteria. Do you want to live close to the city center? Do you have a price range you are qualified for?
I like that you guys are already considering financing options, and the CHFA is a good idea. 

I am a fan of many neighborhoods. I like the Cole/Clayton area. Westwood is a good affordable area with lots of upside. Part of it is an opportunity zone so development is incentivized. 

 So there is a lot to answer here. First is that the tax benefits only apply to capital gains, you can receive any benefits on ordinary income. Even the 10 year exemption for future gains does not apply to ordinary income. So in your example, only the 30k would be tax exempted. So if you reinvest all 100k into one property, only the 30k portion gets preferential treatment. 

You CAN self certify as an opportunity zone and it is pretty simple to do so. You can certify a simple LLC and a "Qualified Opportunity Fund". You have 180 days to move capital gains into this fund, and then another 180 days to deploy the capital.