If you’re looking for a fix and flip investment
opportunity, the Mile High City could be the perfect place to do it. According
to a recent report from housing data company, RealtyTrac, the Denver area was
one of the most profitable areas in the U.S. to fix and flip homes in the third
quarter of 2013.
Data from the report indicates that the average
gross profit of a Denver-area fix and flipped home sold in the third quarter
was $83,697, which is nearly an 83 percent jump from the $45,813 profit in the
third quarter of 2012.
Impressively, the big jump in profit came at a
time when almost a third fewer homes were fixed and flipped in the Denver area.
There were 616 flips in the third quarter, down 31 percent from the third
quarter of 2012 and down 28 percent from the second quarter. The Denver-Aurora
metro area showed the biggest year-over-year percentage increase, according to
the report. Overall, Denver is a striking contrast to the rest of the U.S. as a
whole, where flips were down only 13 percent year-over-year, but down 35
percent from the second quarter.
Real estate professionals specializing in fix
and flip properties agree that the market’s greatly improved with a lack of
inventory and a lot of demand from buyers. The fact that homes aren’t spending
a lot of time on the market and sellers are often getting full asking price (or
above) make the idea of purchasing property to fix and flip very appealing to
If you’re considering purchasing a renovation
property, check out the following industry insider tips below to help ensure a
more positive and profitable experience.
for a $200,000 price tag – experts agree the house needs to be priced low
enough to be able to renovate it and get around the median price of $275,000.
it to the professionals – If you’re more of a weekend-home improvement warrior
you may not know how to maximize the renovation and stay on
budget. A common beginner’s mistake is to focus on cosmetic changes and ignore
electrical, heating, cooling and structural problems, which becomes problematic
come inspection time.
Author:Ken Blevins Phone: 720-255-7242 Dated: February 4th 2014 Views: 2,514 About Ken: Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and...
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