In Colorado we’re lucky to have the best of both worlds: landlord friendly laws (among the top 5 most landlord friendly states for now although trending towards being more tenant friendly especially in the larger towns) and strong underlying fundamentals that drive high overall returns. 

A lot of people in Colorado look at other markets like KC, STL, Wichita because they are close. 

There are larger databases (Co-Star) that have information on larger properties, but I'm personally interested in small to mid-sized multifamily.  

Home was originally 4/2 but converted 2021 to co-housing with 3/7.

He came to me to see if   I would be open to co-owning the property.

Is it better to open an LLC in the state where the property is physically located OR in the state where I live (Colorado)?

first thing one should do is figure out if they quality the 2  in  5 tax treatment and if the home has appreciated a ton like 250 to 500k which is very common in coastal markets and Denver for instance.. selling would be far smarter than renting. pocket the tax free and find another rental. turning it into a rental you lose that one time tax treatment which in my mind is the very best for real estate. 

For those unfamiliar, it’s where multiple investors co-own a property, outsource property management & share rental income and appreciation.For those with experience, I’d love to hear your thoughts:What’s worked best for you?

I'm Jason from Colorado, passionate about real estate investing for 2 years.

They offer you Co-GP status of course!