Fix & Flip Martket in Denver CO

[Ever Olivas]

Hello Everyone, 

Is anyone else having difficulty finding a good deal for a fix and flip in the Denver metropolitan area? I feel like the market here is very tight, and most of the properties I analyze are tight or don't make sense. They seem to be listed too high and there is no room for the 70% ARV rule. Factor in hard money loans, high contractor bids for rehabs, etc and you have no deal. Who here is finding deals in Denver CO and what else are you doing to find deals? Thanks in advance.

[Ben Rhodin]

Hey @Ever Olivas!

You are experiencing what pretty much every flipper is experiencing. and let me start with that the 70% rule is only a guideline, and in a market like Denver, it will rarely happen. It depends on too many factors to only work off of the 70% rule, just like you can't just count on the 1% rule for buy and holds. It's different for every market and investor. Right now what we are seeing investors buying flips between 75-82% ARV here in the Denver market, and some are leveraging less to make the margins better, or they are going for volume.

If you find a 70% deal on the market or even off-market, unless you are the only one getting that deal, it will easily be bid up by other investors. However, we are still doing deals with our investors either on or off the market, if you want to find those home run deals, you have to do the leg work and find those off markets yourself. Any wholesaler, or listing will not be at 70% ARV.