Podcast
Denver Investment Real Estate
Hosted by Chris Lopez - Denver Investment Broker · EN
Denver Real Estate Investing Podcast
43episodes
Episodes
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#571: How to Double Your Rental Income With This Co-Living Strategy
Jul 8, 202500:41:45Tap to summarizeEpisode Overview While most landlords collect $1,800 monthly from single-family rentals, Miller McSwain generates $6,000+ from the same property type using co-living strategies. His room-by-room approach consistently produces 2-4x traditional rental income while maintaining 95% occupancy rates across his Colorado portfolio. This conversation reveals Miller’s complete playbook for transforming ordinary houses into high-income co-living properties that any investor can implement. Host Chris Lopez interviews Miller McSwain, the BiggerPockets author who just published “Co-Living Cash Flow” and developed the industry’s first co-living management software. Miller has systematically built his income from zero to $15,000 monthly across 7 Colorado properties in just four years. His methodical approach to property selection, strategic renovations, and community management has created a replicable system that generates consistent results for investors at any experience level. This episode breaks down Miller’s proven framework for identifying co-living opportunities, executing profitable renovations, and managing multiple tenants through community building rather than traditional landlording. You’ll discover his specific property criteria that ensure success, the renovation approach that adds bedrooms while preserving income-generating common spaces, and the tenant management techniques that achieve 10-month average stays without the headaches most landlords fear. In This Episode We Cover: Miller’s property selection system that identifies 2-4x income potential before you buy The renovation formula that turns 3-bedroom houses into 8-room income generators for $20K Community management strategies that fill rooms faster and keep tenants longer Room pricing optimization – how to command $700-$1000 per room vs $1800 total rent Equity partner structures that fund property acquisitions without personal capital Legal advantages in Colorado following recent occupancy law changes Operational systems that maintain high occupancy with minimal management time And Complete Step-by-Step Implementation Guide! Whether you’re house hacking your first property or looking to scale beyond traditional rentals, this episode provides proven strategies for maximizing cash flow through co-living. Miller’s systematic approach to tenant screening, community building, and operations management offers a blueprint for sustainable room-by-room rental success. https://youtu.be/LFDDljbJusE Timestamps 00:00 – Welcome & Miller McSwain Introduction01:56– Miller’s Background Journey 04:04 – Why Colorado Springs Over Denver 06:06 – Co-Living vs Short-Term Rentals 07:42 – 3-Bedroom to 5-Room Conversion Strategy09:47 – Scaling with Equity Partners – OPM Strategy11:21 – $500K Cimarron Hills Property Generating $2K Monthly15:08 – Biggest Co-Living Mistakes 18:39 – Colorado Occupancy Law Changes 22:16 – Community Building vs Boarding House Models27:27 – Property Management Challenges 30:19 – Co-Living Pro Software Launch 35:36– Problem Tenant Removal Process 39:40 – Book Details & Conference Recap Links from Podcast Book: “Co-Living Cash Flow” by Miller McSwain (BiggerPockets Publishing) Discount Link: colivingbook.com (25% off code available) Available: BiggerPockets store and Amazon Software Launch: Co-Living Pro Website: ColivingPro.io Features: Dynamic pricing, rent collection, tenant management Pricing: Free features with 1% fee on rent collection Conference: US Co-Living Conference Website: co-living-conference.com Next Event: Annual Denver conference Website: millermcswain.com Connect with Miller Instagram: https://www.instagram.com/millermcswain/ Facebook: https://www.facebook.com/miller.mcswain/ LinkedIn: https://www.linkedin.com/in/c-m-mcswain/ YouTube: https://www.youtube.com/@millermcswain Tik Tok: https://www.tiktok.com/@millermcswain
Transcribe →#570: Essential Tax Deductions Every Colorado House Hacker Must Know
Jul 1, 202500:33:10Tap to summarizeEpisode Overview House hackers are making a critical mistake that’s costing them thousands in taxes AND preventing them from qualifying for their next property. The solution? A strategic approach that maximizes write-offs while keeping lenders happy. Chris Lopez hosts this essential episode with two Colorado house hacking experts who’ve cracked the code on tax optimization. Jeff White, top-producing broker and active house hacker, recently saved $12,000 in taxes while still qualifying for his next investment property. Troy Howell from Nova Home Loans breaks down exactly how lenders evaluate house hacker tax returns and why most investors get it wrong. The game-changing insight: Jeff almost went too conservative on his tax write-offs, leaving money on the table unnecessarily. By sending his draft tax return to Troy before filing, he discovered he could take full deductions and still qualify easily for his next purchase. This strategy is now saving him thousands annually while building his portfolio faster. Plus, they reveal the Matt case study – a W2 employee who house hacked an $810,000 fourplex with only $36,000 down using proper tax positioning and lending strategy. In This Episode We Cover: Why self-employed house hackers struggle with loan qualification (and the draft tax return solution) How to write off 75% of your expenses legally when living in a fourplex Schedule E breakdown – what lenders actually look for in your tax returns Repairs vs capital improvements – the $5,000 furnace decision that could save you thousands Record keeping systems that make tax time effortless (apps vs spreadsheets) Why 90% of CPAs don’t understand real estate investors (and how to find the 10% who do) Depreciation strategies that create phantom losses while lenders add them back And So Much More! Whether you’re planning your first house hack or scaling to property number five, this episode provides the tax foundation you need to build wealth faster while keeping the IRS and your lender happy. The strategies discussed could save you thousands in taxes while accelerating your ability to acquire more properties. Don’t let poor tax planning kill your next deal – these insights from two Colorado house hacking experts could be the difference between building wealth and staying stuck. https://youtu.be/giP6-peGHIE Timestamps 00:00 – Introduction 02:37 – W2 vs Self-Employed Income – Critical Lending Differences 04:20 – Jeff’s $12K Tax Savings Strategy – Balancing Write-Offs with Loan Qualification 06:13 – Matt’s W2 House Hack – $810K Fourplex with Only $36K Down 19:12 – Live-In Flip Strategy – Renovating While House Hacking 10:50– Essential Tax Deductions Every House Hacker Must Know 15:58– What Every House Hacker Needs to Know 17:20 – Record Keeping Systems – Apps vs Spreadsheets That Actually Work 20:14 – Schedule E Breakdown – What Lenders Really Look At 22:57 – Allocation Methods – Unit vs Square Footage for House Hackers 24:42- Write-offs Repairs vs Capital Improvements – The $5K Furnace Dilemma 29:20– Finding a Real Estate CPA – Why 90% Don’t Understand Investors Links from Podcast Nova Home Loans Join our next House Hack Meetup Download our Free Toolkit Connect with our Guests: Troy Howell: troy.howell@novahomeloans.com LinkedIn: Troy Howell Jeff White: Jeff@envisionrea.com LinkedIn: Jeff White Who is Nova Home Loans? For over 40 years, we’ve been focused on helping homeowners find the perfect loan to fit their financial needs and personal goals. Working with NOVA is a personalized experience from initial application to final loan closing and beyond. We will be with you every step of the way toward successful homeownership. Start working with NOVA & Troy Howell today! NOVA FINANCIAL & INVESTMENT CORPORATION, DBA NOVA HOME LOANS NMLS 3087/ EQUAL HOUSING OPPORTUNITY/8055 EAST TUFTS AVENUE, SUITE 101/DENVER, CO
Transcribe →#555: Qualified Opportunity Funds: The Tax Strategy Real Estate Investors Miss
Mar 18, 2025Tap to summarizeAre you looking for ways to defer capital gains taxes while building wealth through real estate? Qualified Opportunity Funds (QOFs) might be the strategy you haven’t considered yet. This often overlooked investment vehicle offers significant tax advantages for investors with long-term horizons, particularly when compared to traditional 1031 exchanges. Episode Overview In this information-packed episode, Chris Lopez and the REICO team sit down with Thomas from Hall CPA to explore the ins and outs of Qualified Opportunity Funds. These investment vehicles, created through the 2017 Tax Cuts and Jobs Act, allow investors to defer capital gains taxes by investing in designated low-income and distressed areas called Qualified Opportunity Zones. The discussion covers the tax benefits, requirements, and practical considerations for investors looking to take advantage of this strategy. https://youtu.be/lshl0U0M8VY Timestamps (00:00) Introduction(03:06) Major Tax Advantages for Long Term Investors(07:45) Cash Flow Distributions and Capital Gains Treatment(11:38) QOF vs 1031 Exchange(15:29) Essential Requirements for Qualified Opportunity Properties(19:57) Depreciation Recapture and Straight Line Benefits(29:06) Ideal Investor Profile for Opportunity Zones(36:22) Monitoring Fund Compliance and Investment Timeline(44:29) Final Thoughts & Breaking the “Swap Till Drop” Cycle What Are Qualified Opportunity Funds? Qualified Opportunity Zones are census tracts in low-income and distressed areas designated for revitalization. There are approximately 8,800 such zones throughout the United States. Qualified Opportunity Funds are the investment vehicles used to inject capital into these zones to support their economic development. “Qualified Opportunity Fund is the vehicle that investors use to invest into the Opportunity Zones and revitalize some of these areas,” explains Thomas from Hall CPA. Investment properties must be located within designated Opportunity Zone census tracts QOFs must be structured as partnerships or corporations (not single-member LLCs or sole proprietorships) Key Tax Benefits of QOFs vs. 1031 Exchanges The discussion highlighted several significant tax advantages that QOFs offer compared to traditional 1031 exchanges, making them an attractive option for many investors. “Probably the biggest tax advantage of investing in the Qualified Opportunity Fund is not actually the deferral of taxes, it’s the 10-year benefit,” Thomas explains. “If you hold for 10 or more years, you’ll pay no capital gains tax on the appreciation of that Qualified Opportunity Zone Fund investment.” Capital Gains Deferral: Investors can defer capital gains taxes until April 15, 2027, by investing gains into a QOF within 180 days of realization Tax-Free Appreciation: After holding the QOF investment for 10+ years, all appreciation is completely tax-free Depreciation Recapture Elimination: Straight-line depreciation recapture is tax-free after the 10-year holding period (unlike 1031 exchanges where it’s merely deferred) Investment Flexibility: Only the capital gains need to be invested (not entire proceeds as with 1031 exchanges), and gains can come from any capital asset (stocks, real estate, etc.) QOF Investment Requirements and Timeline QOFs come with specific requirements designed to ensure the capital is used to improve designated areas rather than simply being parked there for tax advantages. “90% of the qualified opportunity zones property must be in a qualified opportunity zone,” Thomas notes, explaining that this is tested on a semi-annual basis to ensure compliance. The 90% Test: Funds must maintain at least 90% of assets in qualified opportunity zone property, with semi-annual testing Property Qualification: Real estate investments must meet one of three criteria: Property vacant for over three years before acquisition Substantial improvement (doubling the building’s basis within 30 months) Ground-up development on vacant land or after demolishing existing structures Who Should Consider QOF Investments? This investment strategy isn’t for everyone. Thomas provided insights into who might benefit most from utilizing Qualified Opportunity Funds. “There’s a few things that you need: you need to have a long-term outlook,” Thomas advises. “You need to have the liquidity to not need that cash within that time period. You’re also going to need to have the liquidity to pay the capital gains that you originally deferred.” Ideal candidates: Investors with substantial capital gains who don’t need access to that capital for at least 10 years Liquidity consideration: Investors need sufficient liquidity to pay the deferred capital gains tax in 2027 while keeping their investment in the QOF Important Dates and Deadlines Understanding the timeline for QOF investments is crucial as the program has specific deadlines established by law. “The last day you could invest is going to be the end of next year, which is 12/31/2026,” Thomas informs the group. “After that point, you’re not going to be able to defer or invest in Qualified Opportunity Zone Funds under current law.” Investment deadline: December 31, 2026 is the last day to invest in QOFs under current law Zone expiration: Qualified Opportunity Zones expire in 2028 Benefit realization: Investors have until 2047 to realize the 10+ year tax benefit Qualified Opportunity Funds offer real estate investors a compelling alternative to traditional 1031 exchanges, particularly for those with substantial capital gains and long-term investment horizons. The ability to eliminate taxes on appreciation and depreciation recapture after a 10-year hold period makes this strategy worth serious consideration for any investor looking to optimize their tax situation while contributing to the revitalization of distressed communities. If you’re considering selling a property with significant appreciation, now might be the perfect time to explore whether a Qualified Opportunity Fund aligns with your investment strategy. Speak with your tax advisor to determine if this often-overlooked tax strategy could help you build long-term wealth while managing your tax obligations. Links to Podcast Hall CPA – Tax and Accounting Services for Real Estate Investors 2017 Tax Cuts and Jobs Act – Legislation that created the Qualified Opportunity Zone program
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