New from Colorado

[Ryan Blankenheim]

Hello, 

I'm new and from Colorado.  I am considering getting into real estate investing part time to create a potential out from my current career in the future. 

I have signed up here to learn as much as I can about many different aspects of Investing before deciding what I want to specialize in as I move on and get started.  At this time I feel like  I may be leaning towards fix-and-flips but that all may change the more I learn.

[Matt M.]

Originally posted by @Scott Trench:

Hey Ryan - Welcome to BiggerPockets! 

Think about it - if you can buy a plot of land with a beat up 1890s Victorian that is falling apart for $300K, demolish and rebuild it over 8-12 months for $400K all in, and sell for $1M, you see a 30% profit margin. On the other hand, even if you fix the place up real nice, you might be in on it for $250,000 in repairs on a $600,000 sale - a $50,000 profit. That's a big difference, and most of the profit in the current market is likely going to go to the developers that are rebuilding.

There's just not a lot of profit margin in the traditional fix-and-flip game from what I'm seeing. 

 Few things:

1. Who is building $1mln+ homes for $400k all in?

2. $250k for a rehab is a LOT. I can't imagine spending that on a $300k home.

3. Don't forget selling costs. The RE commission on $600k is

I've got 2 flips going now, so don't be discouraged. One is a victorian that I bought for $175k in 80205 and another is a split level I bought at $215k. One will sell near $400k and the other in the mid $300s. The deals are out there; you just have to work for them.