DENVER Current Flipping Trends

[Jennifer A.]

Calling my Denver flippers!

I have a few questions about flipping in the Denver metro ONLY. Let me know your knowledge on this as you see the situation right now:

1. Where are the profit margins the highest?

2. Are there homes that have value add situations? Example:

• Are you adding bedrooms to meet demands in a certain area?
• Are you converting multi family to condos?
• New construction? What type of homes?

3. IF YES, Where are these projects happening?

I know the general consensus in Denver is "everything is happening in pockets and it's hard to compare," but I would love to hear some specific examples of what you've worked on in the past 1-2 years and what you're seeing other flippers doing right now given our market.

[Anson Young]

Where profits are highest, so are the amount of money you need to play with AND experience.  

If you are updating a 70s suburban home in Aurora or Thornton, thats not too hard for borrowing costs, repair costs, experience level (though this is certainly not zero experience proposition).  Profits are $10-40kish

If you are doing a pop top in a hot neighborhood (wash park, highlands, lohi, etc), that takes a large degree more capital, borrowing, rehab, experience etc.  Profits are up to $100kish

If you are doing a knock down new build, this will take the most of each of those categories, but can make $100-200k.

Are there value add propositions?  Absolutely, most of ours are adding square footage and bed/bath to unfinished or poorly finished basements.  Some areas you can get away with an addition in the back of a home to add a bed/bath or expand a master and make a master suite bathroom, etc.  Some areas, it makes sense to pop the top or try and double the square footage of the property, and still others the highest and best use for the property is to tear down and build new.

Where are these projects happening?  All over freaking town.  You are asking about the entire broad spectrum of rehab/new build opportunities, so pick a neighborhood and one of the 3-4 things are going on in there for sure.

Condo conversions...  I havnt seen any in a long time.  I know of a ton of old apartment buildings getting completely rehabbed so the landlord can charge 1.5-2x the current rents he is getting.