Colorado Springs Vs Denver as far as better flipping market

Rehabbing & House Flipping
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Colorado Springs Vs Denver as far as better flipping market

Jeffrey Hayes
Investor · Tucson, AZ · Member since 2015 · 64 posts · 3 votes

Hello everyone, I'm currently flipping homes in Tucson, AZ, however, I will be getting my license up in Colorado shortly. Any quick advice as far as what market may be easier/more profitable as far as buying distressed properties for flips. I've narrowed my flip area down to either Colorado Springs or Denver area. I would be happy to live in either city as I have spent some time in both before. My max price for buying SFR would be somewhere around $190,000 before repairs are done. Any general advice as far as inventory, and which city might be easier to break into the flip business up there would be appreciated.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y

@Colin Smith is in Co Springs and might be able to shed some light on that market.

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  • Travis Sperr
    Lender · Denver, CO · Member since 2009 · 1k+ posts · 597 votes
    9y

    @Jeffrey Hayes I fund a fair amount of deals in both markets - the markets have some significant differences, but based on your requirement of purchase price alone you are limited to Colorado Springs for a better chance of finding something. That doesn't mean it is easy in Colorado Springs to find a deal, but better fit for your requirements.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    @Colin Smith is in Co Springs and might be able to shed some light on that market.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    2Reply
  • Norberto Villanueva
    Real Estate Consultant · Colorado Springs, CO · Member since 2013 · 325 posts · 117 votes
    9y

    @Jeffrey Hayes - Thanks for posting. Self-serving perhaps but, lagging a bit behind Denver, Colorado Springs is definitely the better market for affordability and upside potential. However, with a $255k median price, you might want to shift your $195k projection a bit to include rehab so that you're more likely to come in at a 75% ARV all-in. Definitely in the winter season, we're seeing average days on market climb to 40 from a low of 28 in August 2016, still better than the 60 DOM it was this time last year, which will help keep holding costs down in the process.

    All the best!

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  • John Agnoletti
    Lender · Denver, CO · Member since 2011 · 3 posts · 0 votes
    9y

    Colorado Springs is a more balanced market, i.e., a more normal supply and demand market.  Denver has been way out of balance for about three years now, big demand and very little for sale.  However, my fix and flip customers continue to do well in Denver, it's just very hard to find properties to flip.

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  • Jeffrey Hayes
    OP
    Investor · Tucson, AZ · Member since 2015 · 64 posts · 3 votes
    9y

    @Norberto and John Agnoletti,   as somewhat of a side note,  do you know of anyone that has any success in flips in Pueblo, Co?    I know that city is much smaller, but I do know that the median price of a home is somewhat lower there than CS and Denver.   

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  • Rick Thomas
    Real Estate Broker · Pueblo, CO · Member since 2015 · 35 posts · 37 votes
    9y

    Pueblo is somewhere around $155k in median pricing. Investors that are doing right are making a pretty good ROI. Lots of old homes with good bones, just needing a fresh look.

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  • Norberto Villanueva
    Real Estate Consultant · Colorado Springs, CO · Member since 2013 · 325 posts · 117 votes
    9y

    @Jeffrey Hayes - Thanks for asking. Unfortunately, I don't.

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  • Brent Bowers
    Buy and Hold · Colorado Springs, CO · Member since 2015 · 84 posts · 34 votes
    9y

    @Jeffrey Hayes I know someone doing very well in Pueblo. He is a wholesaler and his name is Darren Smith. Look up smithbuyshouses. I think you could find it that way.

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  • Colin SmithBusiness Member
    Realtor · Colorado Springs, CO · Member since 2013 · 988 posts · 447 votes
    9y

    @Jeffrey Hayes,

    I would second what Norberto had to say about Colorado Springs vs Denver. If you're starting budget is just shy of $200k you'll have much more success in Colorado Springs and frequently looking at properties out of your budget in Denver. Just know that we are two very different markets.

    For example in Denver you can successfully flip homes by adding a second level to ranches or tearing down the rough ones and building new. In Colorado Springs, if you tried to pop the top of a ranch or rebuild from a tear down, you'll be in the hole pretty quick. Colorado Springs flips are more traditional of taking what you have, no matter the condition, and making it work. Denver there is more room for creativity but also much higher risk with its high price points. 

    @Brent Bowers is definitely someone you want to be connected with if flipping in Colorado Springs and @Darren Smith is who you want to talk to in Pueblo. 

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  • Jeffrey Hayes
    OP
    Investor · Tucson, AZ · Member since 2015 · 64 posts · 3 votes
    9y

    Thanks to everyone who shed some light on this topic!  I appreciate it.  

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