In this vlog, the host (a chiropractor‑turned‑real‑estate investor) walks viewers through a three‑property scouting trip in the Bailey/Fairplay, Colorado area while explaining a tax‑focused short‑term‑rental investment strategy aimed at chiropractors. He outlines the core mechanics: selecting a $1.2‑$1.6 M price pocket, forming a partnership (often with a friend named Ryan) and placing the property in a trust, putting down 10‑20 % cash, and commissioning a cost‑segregation study to accelerate depreciation on building components. The accelerated depreciation (e.g., $450 K) is split between partners and used to offset earned‑income tax at the investor’s marginal rate, effectively converting a tax bill into a cash‑down payment for an appreciating asset. He then describes the pro‑forma analysis for Airbnb rentals—occupancy rates, nightly rates, operating expenses, and cash‑on‑cash returns—to ensure the property is cash‑flow positive. Personal motivations are woven throughout: retiring his wife, providing for a growing family, and creating time‑ and financial‑freedom. The host tours three properties, ultimately favoring a 5‑acre, 4‑bed/3‑bath listing at $1.35 M in Fairplay that meets both personal retreat and Airbnb criteria. He promises future updates on the purchase process and invites chiropractors to use the strategy to build generational wealth.
We walked up to this third property, and as soon as I got out of the truck, I knew this was the one.
What's up guys? We are winding through the roads about 30 minutes out of Bailey, Colorado, and we're starting to look at our first investment property. And we're looking at 3 today, so I wanted to bring you along for the ride. But I also just wanted to share my strategy on these investment properties because I think a lot of times it can become, you know, this topic that a lot of influencers are putting out into the internets and it sounds really glamorous and you never really understand the nuts and bolts behind the actual strategy of purchasing real estate and then how it can help you to offset your tax liability. As a small business owner. So I'll break it down for you, at least up to what I currently know, which is not a ton, but enough to initiate the process. Essentially, the way that it works is right now we're looking in a specific price pocket, and that price pocket was strategically chosen based on the amount of taxes that we want to offset versus the amount of cash that we want to put in it. So right now, Ryan and myself, we are currently going to co-purchase this and put it into a trust and start our real estate portfolio. But we're currently looking in the $1.2 to $1.6 million price pocket. Let's just pick like $1.35 for the sake of simplicity. What you do is, depending upon the product that you can qualify for, there are very few 10% down products out there for investment properties that are not your primary So you can just go ahead and by default, for the sake of calculation, say that you got to put 20% down. And what that looks like is, you know, going in on a partnership deal at $1.3 million, let's say $1.35 million, then 20% of that, or 10% of that, which is how much each partner would put down, is $135,000. So you're going $135,000 cash into the down payment. And then You know, on the other side of that, you can do what's called a cost segregation study. And the cost segregation study, which is one of those popular buzzwords that show up on Instagram Reels quite often, but essentially what they do is they go in and they have an appraiser, like a special third-party appraisal company that comes in and they analyze and assess every single item or every single component Of the entire home, from the door hinges to the doorknobs to the windows to the window seals to the appliances, uh, to, you know, pretty much every single structural component that makes up the entire home. And what you can do is provide accelerated depreciation of those items and offset that in year 1 against your tax liability. So I'll give you some simple numbers here. Let's say we have that $1.35 $1.5 million home and we put $135,000 apiece down, and after the cost segregation study, they say that the depreciable value or the accelerated depreciation amount comes out to, let's say, $450,000.
Okay.
Then you can take that $450,000 and in Ryan and I's instance, divide that by 2. And so you have the $225,000 to go against your Earned income for the year, and then whatever tax bracket you're in is what determines how much is actually going to be eliminated from your tax bill. So let's say $450,000 total in that depreciable value to go against our earned income at let's say 35% tax bracket. I'm doing back of napkin in head math currently, but that's going to come out to around $150,000. $150,000 to $155,000 in the 35% tax bracket. And then you divide that by 2 and, you know, you're offsetting individually about $77,000 or, you know, give or take, for your individual tax liability. So that's not $77,000 taken off of your earned income for the year. That's $77,000 taken off of your tax bill. So if you have a $100,000 tax bill, then your tax bill has now been reduced to $23,000. So essentially what you're doing is you are trading your tax liability or your tax bill for an appreciating asset. Because now what we're going to do is we're going to put it onto Airbnb and we're doing what's called a pro forma on each of the properties that we're running or that we're looking at. And that pro forma does a full analysis of all of the expenses, all of the cash invested in the property versus the nightly cost or the amount that, that a comparable Airbnb to that Airbnb will go for on a nightly rate, and then you look at the monthly capacity percentage. So let's say it's rented out 80% of the time at X amount of dollars per night. That leads you to an average of X amount of dollars in income per month versus the amount that you're paying in the mortgage, cleaning fees, utility bills. Property management, all of that to ensure that you will be cash flow positive on the property. And so the whole goal is to take your what would have been tax liability bill, put it into a cash down payment to purchase the home. So you're essentially trading a bill for an appreciating asset, and then have other people pay your mortgage while also generating a cash on cash return. So you're actually making money on money that you otherwise would have lost to your tax liability and essentially paid to the government. And so this is called the short-term rental loophole. And I'm sure there are a lot of things that I'm leaving out and maybe some things that I said mistakenly that might not be 100% accurate, but big picture overview, this is how it works. So I'm going to keep you guys updated as we go through this buying process because my whole Our goal here is to help chiropractors make more money, reach more people, and change more lives. And this is the make more money mission. And it's not just about making more money, but it's about keeping as much of your money as possible so that you can have more optionality. You can have more time freedom, you can have more financial freedom. One of my biggest flexes in life right now, and I've said it repeatedly, is that I got to retire my wife. She's over here.
Hi.
You can't see her 'cause this is tracking my face, but she's sitting next to me right now and we're just talking about how awesome it is that she gets to stay at home and take care of Theo. And she's also pregnant. So we'll also be able to stay at home and take care of kid number 2. And that is one of my biggest accomplishments. And, you know, we wouldn't be able to do those things if we weren't figuring out ways to keep as much money as possible so that she doesn't have to work. Childcare is extremely expensive. full-time job just to pay for childcare. And so instead of doing that, you know, we just tried to figure out ways how do we first off make more money in the businesses, and then second of all be able to keep more money and spend less money along the way. And so I'm gonna try to share as much insight as possible so that if you are interested in some of these tax strategy loopholes, so to speak, then hopefully this will be a good resource for you as a chiropractor. But I'm gonna go So I'm gonna go ahead and log off now, and then whenever we get to this first property, I'll show you guys what we're looking for and what's going into the, uh, the consideration for each of these homes that we're looking at. But I will see you in a few. All right, property 1, 163 Old Coral Road, Bailey, Colorado.
Wrapping up on-site property number 1, and, uh, our review is that it's very segmented, so not very open community areas, which is what we're looking for because we do want to use this, uh, selfishly for personal use as well as masterminds, retreats, and things like that. And then, you know, we're looking to purchase An investment property and rent out as an Airbnb with property that we would appreciate as an Airbnb. And it just feels very segmented. So a bunch of small rooms all over. It would sleep a lot of people, but just not a lot of large spaces for, you know, people to get together and, and connect. And so that's what we're looking for. Anyway, we are off to property Number 2, I think the next property has 30 acres, which will be sweet. I'll talk through our plan for that whenever we get there, but stay tuned. All right, we are on property at property number 3, and from the get-go, I, uh, I said that That once we knew, we would know. And we walked into the first 2 properties, it was just one of those, we're like, yeah, it's like, all right. But we walked up to this 3rd property, and as soon as I got out of the truck, I knew this was the one. So, um, I just gave you a full walk around of the space, but it's 5 acres, it's in Fairplay, Colorado. We're looking at $1.35 million, currently a 4-bed, 3-bath. Um, but the property is so well maintained. Like, there's walking paths all over, there's a water well, there's a creek down here that looks to be running during the fall and the winter months, maybe even the spring. There's walkways that go down to some really great, uh, really great benches, little rest areas. And I mean, this is what we're looking for in an investment property. This is what we're looking for in an Airbnb that will also double as personal use. I could see myself and my family being here for Christmases, us getting away, you know, leaving Wednesday evening, coming back Saturday or Sunday night, and just getting away into the mountains. This place is so cathartic, it's incredible, and it's crazy to me the stark contrast between what $1.35 million will get you in different places. I also realize right now that this microphone is not on. So I'll turn it on now. So it's interesting because when I gave you my theoretical analysis of the finances, the number that I used was $1.35 million. And whenever we pulled up this listing, it's $1.35 million. So there's just a lot of things aligning here financially. It makes a lot of sense. And aesthetically, it's got, man, this awesome, incredible Colorado mountain aesthetic. The Land here is well manicured. It's usable land all the way around. There's places where we could even add some additional domes for, you know, $20K to $25K apiece. We could cut down some of these trees to have a view of the meadow and the mountains. There's a Can-Am in the garage, so it looks like they have some ATV paths around here. Like, this is everything we could have dreamed of and more. So as we begin to put an offer down and then walk through the buying process, I'll keep you updated on how that looks. That way, if you're interested in doing something like this, you know, it'll give you some insight into what the process looks like. But I highly recommend, you know, if you're making good income, figuring out a way to keep it is going to be your next step to building generational wealth, which is exactly what we're doing right now. So thanks for coming along on this vlog. I'm going to keep you updated through the buying process. Let me know in the comments if you have any questions. I hope you enjoyed it. And let's, uh, let's enjoy this property. I mean, check this out. Nice walkway, water features coming all the way down. I mean, there's nothing better than a Colorado mountain home in this condition for this price point. This is exactly what we were hoping for and envisioning when we initiated this process. And I hope we can see it all the way through. Thanks for watching. Keep making moves.
