As the neighborhoods in close proximity to Denver are becoming more crowded and pricey, would-be buyers are flocking further from the city to check out up and coming areas where prices may be a
Fix And Flip Profits To Be Made In Denver
Dated: 02/04/2014
Views: 2539
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 some.
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.
- Shoot
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.
- Leave 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.
Ken Blevins
Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 23 years of experience in collections, foreclosure/bankruptcy, los....
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