2% test in Colorado Springs?

[John Dayhoff]

I've been looking at a number of properties. I have seen several sell very fast for market price, and they need a lot of fixup. My most recent analysis was for a ~$250k ARV on the market for $220k (House is a wreck). I physically looked and found $35k in fixup (very conservative number). It had a contract and multiple offers same day for above asking (cash). My offer would have been laughed back across town to me

I am wanting to do a BRRRR. Is the market that hot? Are investors that insane? Am I just missing something? I know there is this "NEW MATH" thing, but what gives?

I'm thinking about buying my Gma's house for $200k and it would rent for $1500/mo.  Not thrilled with numbers, but it seems way, way better than anything I've seen in 2 months of looking.

Any opinions?