There is no HOA and there would not be one owner (there would need to be co-borrowers as my business partners and I want to take this down together). 

Insurance co's will give me $500k in liability protection for $10s of dollars per month. 

Colorado Springs has seen 20% growth in home values in the last year.

The original price for the CO property was $95,000 and I took $30,000 in depreciation on it.

Lol, I lost some workers that now own real estate after I showed there was more than one way to get into it, but gained life long friends.

I have a property in Aurora, CO that I've been house hacking for about 3 years now.

in colorado springs and i'm looking to replace my old laminate countertop with a new one, plus a new sink brushed nickel. 

.- If you have a family member or really good friend, try to work out a deal where they co-sign on the loan with you so you can use their credit.- If you are unable to buy a personal home with your credit right now, you may look into other avenues such as investment property with HML. 

My question is if I went in with my sister as a co borrower (her being the occupant) could the title be switched solely to me after a year or two when I’m ready to develop it? 

You could still do a CO refi on your CA rental up to 60% or 70% LTV and access $128k - $190k with fair terms in the high 3s to low 4s for interest rate.