1st timer sending out feelers

[Elliott Anderson]

Looking to get a general idea of how others are succeeding in the Colorado market. To me it seems inflated and a difficult market to get started in. I'm looking to supplement my income with one property at a time, however Redfin and Zillow only give a few houses that could even remotely bring a profit on a renovation. I'm currently a commercial construction superintendent for a commercial GC, so general construction is an area of strength, however the rest is information I'm still attempting to gather. Any suggestions or conversation would be helpful. 

[Bo Smith]

Colorado is tough for flips right now, you're not wrong about that. But your construction background is a huge asset -- that's actually where most people get stuck. You have that handled.

The issue with Colorado is that property prices are high relative to rents, which kills flip numbers and rental cash flow. You're right that Zillow is mostly showing breakeven or slight negative situations. That's because both flippers and landlords have already picked through the inventory looking for actual deals. The deals that exist are off-market.

Your path forward: stop looking at MLS listings and start building relationships. Call real estate agents, wholesalers, and property managers in your market. Tell them you're a flips buyer with construction experience looking for off-market deals. Most of the deals worth doing come through people, not sites. You'll also find better opportunities in emerging neighborhoods or areas slightly outside Denver where prices are more reasonable relative to rents.

Single properties "one at a time" is the right approach for starting. But be honest about whether Colorado is the right market for your first flip, or whether you should deploy capital somewhere with better cash flow numbers (Texas, Arizona, etc.) while you learn the process. You can manage from a distance if deals are solid. Colorado might be better as a rental market or a secondary market after you've done 2-3 deals in a better flipping market.

What neighborhoods in Colorado are you looking at, and have you connected with any local wholesalers or agents yet?