Fix And Flipping Profits Soar In Denver

Dated: 03/08/2014

Views: 1113

The Denver area was one of the most profitable areas in the U.S. to fix and flip homes in the third quarter.  The average gross profit of a Denver-area fix and flipped home sold in the third quarter was $83,697, almost an 83 percent jump from the $45,813 profit in the third quarter of 2012, according to a national report released in October 2013.  Denver is in marked contrast to the U.S. as a whole, where flips were down only 13 percent year-over-year, but down 35 percent from the second quarter, according to RealtyTrac.  

The Denver-Aurora metropolitan statistical area showed the biggest year-over-year percentage of the 20 largest MSAs tracked by RealtyTrac, a housing data company based in Irvine, Calif.  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 most common price for buying a potential fix and flip home is probably around $200,000.  It has to be priced low enough to be able to renovate it and get around the median price of $275,000.
  However, you have to have an eye for flipping homes.  A common beginner’s mistake is to focus on cosmetic changes and ignore electrical, heating, cooling and structural problems.  If you overlook these areas, you could get trouble during the inspection.  Make sure you have good contractors to help fix things right and at a good price.  The best scenario calls for buying flips for cheap and flipping them over quickly.  Are you in the market for investing in a Flip home?  

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Sheryll White

As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....

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