Any thoughts on Canon City, Colorado market?

Question

Hey BP - I'm looking at funding a flip in Canon City through a HM lender and am just wondering what others in the area are experiencing there. The borrower has one exit strategy: sell. I've got data on the market but the sample size is so small that it's a little difficult to analyze the viability of the deal. Anyone out there having good luck (or bad) with flips in Canon City?

Account Closed · Answer

@Tim Emery - Good to know! Thanks!

Jake Sklanka · Answer

I'm interested in these areas as well. I've looked at quite a few properties in Salida and the prices are high and do not think they would cash flow because of the rents being low. Rents and demand seem to be increasing, but my numbers haven't worked yet. Might be able to a fix and flip or BRRRR. BV is less expensive. Is anyone investing in Canon City, Pueblo, Florence area and have a better feel for that area?

We're under contract to sell a fix and flip condo here in Breckenridge and want to complete a 1031 exchange. We wanted to keep the condo as a STR, but our partners want out due to crazy appreciation over last year. Purchase $293k, $23k remodel (we did everything but install the cabinets), ARV $469k (under contract).

If anyone is interested in meeting up, we're in Breckenridge and would love go for a hike, mountain bike or just meet for a coffee or beer. I'll be in Denver for the month of October to take a real estate agent license class and plan on attending the BP meetups during that time. Looking forward to meeting other investors!

Kalem Lenard · Answer

I've lived in Canon City for the past 8 years. Not an experienced real estate investor by any means but would be more than happy to lend any thoughts on the area. Would also be interested in partnering up on projects.

Anyone have any insights/thoughts on long term holds in Pueblo West?

Tim Emery · Answer

I've heard a couple of very experienced investors are doing flips down there. I've also heard the city can be interesting to deal with and can make things difficult if the want. I know things in Canon City, Salida and Buena Vista are starting to get better. The weather down there is great and a lot of people are retiring to the area for that reason.

@Travis Sperr Is right about people living closer to their flips. I've met a couple of gals from down there that have made some money. They attend our events and seem to be doing pretty well.

Travis Sperr · Answer

Years ago I stopped lending in Pueblo because of the challenges we had there - not to say investors can't be profitable there but it just didn't work for me. My first two questions when reading our your loan to value (how was the value come up with?) and where does the investor live? may not seem significant but it has been my experience that the closer the borrower lives to the subject the better the outcome - meaning that if an investor that lives in Ft Collins, but is only doing business in Canon City because of low prices I would pass.