I plan to rent out the basement but have a couple of questions as this is my first house/house hack:-Littleton rental law considerations (this might fall under JeffCo rather than city of Littleton, can't really tell)-Thoughts on best lease strategy for that area (STR/MTR/LTR)?

I offer a lot of development consulting since I have a background in Civil Engineering and Urban Planning.

My wife's even planning to camp out there for a couple of weeks to make sure things get done right as we are based out of NJ, so time's of the essence.

Let me show the numbers; please let me know if it makes sense:Property Original Value $10,000,000.00 Initial Finance $7,500,000.00 Investors Money (Downpayment) $2,500,000.00 Ipotetical foced Appretiation New Value $12,500,000.00 New Downpayment/Equity $3,125,000.00 Refinance Principal $9,375,000.00 Cash Out from Original Investment back to investors $1,875,000.00 There are some MF investors that hold the property with no plans to sell and keep doing refinancing, and this seems to be the model applied by Ken McElroy.

Do you plan on rehabbing it?

We planned on using this as a STR and were expecting 50% occupancy.  

To find the plan that best suits your financial condition and investing goals, investigate both private money and house flipping choices.

In my experience, short term rental managers charge the most, followed by room by room, followed by longer term management.There may be an opportunity for you to do this yourself if you plan to continue living in the home.

Did you tell the owners that you plan to not occupy the place?

That loan will have some bank hand-holding that people dislike (annual reporting requirements for the first few years, all rent checks must get deposited into an account at that specific bank so they can see it coming in and have an automatic "early warning signal" if they drop off, etc), but hey in their case I'd say it wasn't unwarranted, their only track record is that of mismanaging after all.