Fix/Flip advice for Colorado
Hey All,
I'm jumping back in to the investing world after taking some time off. Looking at the CO market and it looks competitive both for fix/flips and value add Multi. I've got some mailers out as well as talking with some wholesalers, but finding I'm just 'stewing' instead of jumping in.
Anyone doing this successfully in Colorado willing to connect? Is Colorado (Denver metro) still worth my time/efforts?
Most Popular Reply
Denver still has opportunity, but I think the easy money phase is mostly gone. The market feels a lot less forgiving now than it did a few years ago, especially for people underwriting aggressive exits or thin margins.
What I’m seeing from the financing/capital side is:
tighter spreads on flips
longer resale timelines
higher carrying costs
and value-add multifamily deals needing much better basis to really make sense.
That said, Colorado still attracts:
population growth
higher-income tenants
and long-term demand drivers.
The operators doing well there now seem to be the ones who are:
extremely disciplined on entry basis
patient on acquisitions
and conservative on exit assumptions.
Honestly, the “stewing” feeling is probably your instincts noticing that the market isn’t as easy as the 2020–2022 environment. That’s not necessarily bad — sometimes slower deployment leads to better deals.
I’d especially be careful with:
heavy rehab assumptions
insurance/tax creep
and overestimating retail buyer demand on flips.
The deals I still see working in Denver metro tend to be:
cleaner cosmetic value-add
smaller multifamily with operational upside or situations where the seller motivation creates real basis protection.