Condo Flipping in a Ski Resort Area

[Conor H.]

Hi Everyone, 

First time poster here. I live in a booming ski town and am looking to flip condos. I picked up my condo for a great price and did a complete remodel which has increased its value by significantly more than I put into it, which made me think why don't I do this with other condos and sell them at a profit (hopefully). I am a broker so I have access to MLS and have a jump on good deals.

The questions/situations I am seeing are- There is a limited number of housing options here so its difficult to pick up condos far below market value, its possible just rare. Inventory is always low here. So is picking one up for near market value and doing a overhaul worth it? IE will I get out more than I put in generally? 

Also I haven't heard of many if any people doing this up here, could be a red flag or could be an untapped market? 

Any other advice for a new flipper is greatly appreciated, specifically in resort areas. I am reading The Book on Flipping Houses and getting a plan together, but the vacation area adds a different dynamic to the whole thing.

Thanks for reading!! 

[Jake Sklanka]

Hey @Conor H.

I just completed an unintentional flip in Breck. My parents wanted to move to Breckenridge for 2 years and were just going to rent. At the same time, there was another unit in our building (Gold Creek) for sale and I convinced them to go 50/50 on it. They lived there while we remodelled, moved walls, redid both bathrooms and the kitchen. Here are the numbers:

Purchase Price June 16, 2016 $293k

Down Payment $60k

Remodel $25k

We planned on buying them out after the 2 years and using it as a STR. They wanted out early, before the second winter and prices had appreciated so much that we couldn't even afford to buy them out!

Sold Oct 2, 2017 $459k

Taking that money to 1031 exchange into another fixer property in Breck.

It can be done!

Let's talk more.

Cheers,

Jake