Is Denver an ideal place for flipping?

Question

Hello BP communities,

I am a newbie here (technically I just joined a few hours ago) and ever since I joined, I have been reading many exciting and informative posts in the forum section. My husband is in Federal Way WA, I am currently in Singapore and will be moving to WA in a couple of weeks time. Being that the Federal Way-Seattle area is just way too expensive for us, we have been looking for a city that has strong flipping and rental potential to relocate to and not too expensive. Denver is currently where we are looking at (he is a hardcore Minnesotan so anywhere hotter will basically melt him).

Is Denver an ideal place for us to move to if we are looking for a place with flipping and rental potential? Or is there any other low-to-median-cost city that we could consider? My husband is in the construction line so remodeling homes is what we are looking forward to.

I know it's sleeping time over there for you guys (I am sitting here in my room sweating like a piggy in this hot and humid afternoon, haha), so anytime when you wake up and see this post, you could just write :)

Looking forward to hear back from you! ^_^

Cheers,

Naomi Hymes

Bill S. · Answer

@Naomi Hymes what works for your friend may or may not work for you. Spend some time with the Ultimate Beginners Guide and figure out what works for you. BTW There really aren't any $50K houses in Denver and there are lots of people doing good in Real Estate here. Again pick where to live and then figure out what you want to do with RE in that area. There are so many ways to make it work the real challenge is to chart a path and then do it.

Andrew Kniffin · Answer

Naomi I would encourage you to speak with Arthur Bates regarding flipping in Kitsap County.

BTW I just moved from MN so understand your husband's bias for cold weather!

Alex Chin · Answer

Hello Naomi and welcome to the community. Here's hoping for success and that you  and your husband enjoy living in Washington.

In addition to Tacoma, I would also recommend looking at some of the cities just across the water. Bremerton has a lot of possibilities, Olympia...and then if you go north, Marysville, and Mt. Vernon both have something to offer if you're after sub-$75K properties.

I would counsel you to keep an open mind on slightly higher-end flips though. Dealing with the cheapest of the cheap can easily backfire on you, exit strategies are more limited and financing can be a little tougher to get.

Timothy Tooker · Answer

Naomi Hymes

For the most part the crime in pierce county is not that bad... But the area's to stay away from are South Tacoma (although there are some good deals there), parts of Lakewood (by McChord Air force base), some of Steilocoom and part of spanaway that boarders south Tacoma.

If you need any assistance you can email me or call me.

Timothy Tooker · Answer

Naomi Hymes

A lot of investors, home buyers/renters are moving just south of federal way/seattle to Tacoma Pierce county area. There are still a ton of good deals down here and the rental market is starting to boom.

Bill S. · Answer

@Naomi Hymes I'm not sure what homes sell for in Seattle but Denver is not cheap by most people's standards. Personally, I would not pick a place to live based on the price of real estate but where you want to live. If you want to live in Denver that's fine. If you want to stay in Washington, stay there. You just have to get a bit more creative to start. Once you get rolling, then price doesn't matter as long as it makes you money.

Micki M. · Answer

@Naomi Hymes to answer your question about Denver being ideal for flipping my personal opinion is no.  There is heavy competition for both on and off market properties, and the margins are slim.  I personally haven't seen a residential flip I'd do given the risk/reward and like many people have been looking at projects out of state or doing niche stuff like my live/work flip. https://www.biggerpockets.com/forums/522/topics/18...

Of course if you're taking a long term view there will likely be better opportunity at some point either due to new areas taking off or a change in the real estate market.  It is a great place to live so @Bill S. is right when he says live where you want to live, invest where it makes sense.

Andrew Kniffin · Answer

Hi Naomi. If you search for Arthur on BP you will find him. I've also texted him and alerted him to this thread.

He's focused on Bremerton (which is within Kitsap County), and that's a location referenced earlier.

Naomi Hymes · Answer

@Alex Chin Thanks Alex!! Will definitely check those places out!! When you mentioned cheaper properties may backfire, under what condition might that happen? Would love to hear your sharing too if you ever encountered that either yourself (I am sorry if that happened) or people you know! :)

@Andrew Kniffin  Who is Arthur Bates? Is Kitsap County a potential place to look into as well? Nice to know that you're from MN too!!! We are from Buurrrrrrmidji (I was there for 4 years) and my husband grew up there, so yeah I don't blame him for not moving down south, lol.

Naomi Hymes · Answer

@Timothy Grothuesmann Thanks a lot for the info. Will touch point with you again if we decide to look around in Tacoma.

@Bill S. Thanks Bill. I am reading that now. Lots of great stuff there. Thanks for reaffirming that material :)

Cheers,

Naomi

Is Denver an ideal place for flipping?

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