The current landscape seems dry. My concerns with flipping in Denver, at this time are:
- declining REO and foreclosure inventory coming to market
- rising real estate pricing is bringing distressed owner out of the upside down conditions and restoring their equity
- cash buyers/investors are abundant and the competition is squeezing the margins very thin
- loan rates are slowly increasing which will have downward pressure on price increases, so the current price incline may begin to stall. Therefore I wouldn't estimate price appreciation into ARV estimates.
These factors seem to be making flipping strategies ever more challenge.
Glenn
Comments (1)
The current landscape seems dry. My concerns with flipping in Denver, at this time are: - declining REO and foreclosure inventory coming to market - rising real estate pricing is bringing distressed owner out of the upside down conditions and restoring their equity - cash buyers/investors are abundant and the competition is squeezing the margins very thin - loan rates are slowly increasing which will have downward pressure on price increases, so the current price incline may begin to stall. Therefore I wouldn't estimate price appreciation into ARV estimates. These factors seem to be making flipping strategies ever more challenge. Glenn
Glenn Gray, over 12 years ago