BRRRR in Colorado

• Local codes & permits: Rehab timelines and requirements vary by city/county; confirm inspections early.
• Property taxes & insurance: Reassessments and rate shifts can impact DSCR; underwrite conservatively.
• Landlord‑tenant rules: Screening, deposits, notices, and eviction processes differ by jurisdiction.
• Contractor capacity: Validate bids, scope, and change order terms; keep tight draw schedules.
• Refi criteria: Seasoning, LTV, DSCR, and appraisal standards influence your timeline and proceeds.

Regulatory Landscape

• Landlord-tenant laws balanced; 3-day notice for non-payment with specific procedural requirements.
• Local rent control permitted in limited circumstances; most municipalities have not implemented.
• Security deposit limit one month's rent unless additional risks; return within 30 days with deductions detailed.
• Property tax assessment appeals available; TABOR amendment limits assessment increases.
• Building permits vary by jurisdiction; energy efficiency and seismic standards in some areas.
• Lead paint disclosure required; radon testing recommended given geological conditions.
• Short-term rental regulations increasingly restrictive in popular areas; licensing and caps common.

Financing Tips

• Model exit scenarios if ARV or rent land below target.
• Carry reserves for overruns and refinance delays.
• Lock rates strategically; track market movements.
• Document rehab thoroughly to support appraisal value.

Speak with Jake N Finance Group to size leverage and timeline.

Financing Benchmarks

• Target DSCR ≥ 1.35–1.45x given higher acquisition costs and market competitiveness.
• Purchase LTV typically 70–80% due to price volatility and market conditions.
• Refi LTV commonly 65–75% with lenders requiring updated appraisals and market analysis.
• Seasoning requirements 6–12 months; some lenders require longer given market volatility.
• Carry 15–20% rehab contingency due to skilled labor costs and material availability issues.
• Maintain 12–18 months reserves given economic sensitivity and seasonal variations.
• Insurance costs moderate; wildfire coverage considerations in certain areas.