Mile High Home Group – Welcome to Denver

Property taxes reduce rental cash flow by adding 0.5-0.7% of assessed value annually to expenses—on a $600K Denver rental, that’s $3,000-$4,200 yearly or $250-$350 monthly, factored into the 50% operating rule alongside maintenance and vacancies, directly impacting net yields for investors.

Tax Impact on Cash Flow Calculations

After 15+ years in Denver real estate and thousands of transactions, I subtract taxes from gross rents in pro formas—$2,400/month rent minus $1,200 (50% ops incl. taxes/insurance/management) and PITI leaves tighter margins. Assessed values (7.15% of market) reassess every two years, spiking 8-12% post-appreciation; appeals cut 5-10% with comps. Rentals pay full residential rates sans primary exemptions; HOAs stack on. Positive flow targets $300+/door after all—taxes eat 10-15% of NOI.

Escrow stabilizes budgeting.

Denver-Specific Tax Burdens

Highlands Ranch real estate hits $4,000-$5,000/year on $750K homes (Douglas County 0.57% effective), HOA fees ($150-$400) compounding for village rentals near Mountain Vista schools. Littleton Public zones average $3,200 on $550K bungalows (Jefferson 0.62%), flexing lower sans heavy covenants. Core Denver condos blend city/county at 0.65% plus reserves. Market cycles reassess booms higher; balanced winters defer hikes. Compared to Littleton flexibility, Highlands Ranch funds top schools but trims investor nets slightly.

Appeals succeed with recent sales data.

Practical Advice for Buyers and Sellers

Area	Annual Tax ($600K)	Monthly Hit
Highlands Ranch	~$3,500	$290
Littleton	~$3,000	$250
Core Denver	~$3,900	$325

Investors, use PITI calculators—appeal biennially, deduct on Schedule E; target pre-tax 7% caps.

Sellers to rentals, disclose history—offer tax proration credits.

My hands-on, concierge-level service models tax-adjusted flows block-by-block, weighs school/HOA fits through market cycles, builds pricing from local sales, and negotiates relentlessly for resilient portfolios. Clients are long-term relationships and friends, not transactions—integrity, honesty, transparency, and relentless work ethic optimize after-tax returns.

If property taxes squeeze your Denver real estate rentals—Littleton, Highlands Ranch breakdowns—reach out anytime. I’m here for a no-pressure conversation and honest guidance tailored to the Colorado housing market.