Colorado may be a future destination in the upcoming years. Anyone know which cities would be considered "linear" real estate markets and whether the BRRRR method would be a viable option in that location? Also, any idea why there are so many homes being auctioned rather than sold by owner or agent?

@Andrew Curro . Hey Andrew, The Colorado market is really hot right now. I'm not sure where you are finding a lot of auction properties. In the greater Denver area there are only 2,800 homes active on the market. We have bidding wars and lines out the door of people trying to see houses. For Denver to have an even market, we would need 16,000 homes on the market. 

Yes, the Brrrr method works well here, we have large appreciation. Just a heads up, you won't be able to find much under $400k. 

Some of the small towns on the eastern plains and remote mountains you maybe able to find deals, but they aren't great BRRR deals.

If you want the Tri-fecta of Cash Flow, appreciation and solid renters this is a place to be. Just make sure you can handle buying at $400-600k

@Tim Emery Thank you Tim. I was under the impression that to make the most out of a deal using the BRRRR method, properties should fall into the category of beaten down fixer uppers. How would homes in this area that are $400k+ be ideal for BRRRR? I may be off here, but I would assume that most homes at this price would be in great shape already.

@Andrew Curro The low end of our market is $400K That's for the fixer uppers. Remember price is all relative to the market you are looking at. In Denver, the low end is $400k and the high is $600ishK. In Cleveland the low end is $50k and high end is $150ishK. In San Francisco the low end is $700k and high end is over $1,000,000. 

These are very general numbers but hopefully that helps you understand the markets. Each area of the country is different. 

@Tim Emery very helpful thank you!

@Andrew Curro Like @Tim Emery I have not seen auction properties. We also are experiencing record low inventory and our prices have appreciated double digits. Residential real estate is still a good investment option. You may outlying areas to the "Front Range" I have an investor clients who invest in Canon City and Pueblo. Every location is going to have pro's and con's for sure. 

@Andrew Curro Like @Tim Emery I have not seen auction properties. We also are experiencing record low inventory and our prices have appreciated double digits. Residential real estate is still a good investment option. You may outlying areas to the "Front Range" I have an investor clients who invest in Canon City and Pueblo. Every location is going to have pro's and con's for sure. 

Local title company sent out the notice for election and demand for the last 2 weeks; it had 1 property. 

@Andrew Curro

The BRRR method doesn't work in any large cities like Fort Collins, Boulder, Westminster broomfield, Thorton, Denver, Lakewood or anything around there. There are small possible pockets like Loveland, Aurora, commerce city but you would have to have a great marketing plan.

It's extremely hard to purchase a property at 70-75% ARV. I have seen some in East Thorton but it was an automatic bid war with cash investors.

Look into areas like Greeley and CO springs and Pueblo. I’m a licensed agent here in CO and I’m still even thinking areas like Cheyenne WY.

The last BRRR I did was in Berthoud and found the deal on Craigslist, not MLS.

Also another note, all 3 MLS from Fort Collins all the way to Pueblo are now all sharing data so we can pull list from further away really helping me and my investor friends find properties down where the fruit is ripe.

There are lots of ways to add value to a property. Finding a beat-down fixer-upper and doing the rehab work is one of the more common ways. You could also increase the square footage or add a bedroom (maybe finish a basement, convert a sunroom into living space, convert a dining room into a bedroom, or convert a garage into living space). Depending on the local market that can add huge value to a property without rehabbing every part. Usually converting a 2 bed property to a 3 bed adds a ton of value. 3 to 4 less so but still significant depending on the neighborhood. 

Any property in any location can work as a BRRR if you can buy it right. Rough condition or untapped potential may be the reason you get a good deal. Maybe the sellers are under pressure to sell and you can make the transaction convenient for the. At the end of the day, if you are trying to BRRR you need to add value and it doesn't make much difference how. 

If you are trying to pull as much money out of the property with the refinance as possible (and I assume that you are) your price point can make a huge difference. For example (with simplified numbers):
If you can buy a property for $50k, put $50k into, and end up with a property that will appraise for $150k, you should be able to refinance and pull all your money out.
If you buy a property for $450k, put $50k into it, and end up with a property that appraises for $550k you won't be able to pull all your money out.
In both cases you spent $50k to add $100k in value, but if you refinance for 70% LTV in the first case you've invested $100k and you can borrow $105k, and in the second you've invested $500k and can only borrow $385k.

In order to pull all your money out any price point you need to increase the value by a large percentage, not just a large dollar amount. That is one reason many flippers and BRRR investors target with lower priced markets.