Denver flippers/buy and hold criteria

[Benjamin Fukui]

I am still in the education process of learning how to properly analyze deals, contracts, etc. I wanted to know if investor would be willing to comment on their minimum profit they would expect from a flip, about how many days it is taking for a investment to be completed as well as costs associated while rehabbing that may be unbeknownst to a newbie? (Insurance, utilities, closing costs…..) any comments would be much appreciated.

[Louis Jeffries]

@Benjamin Fukui Hi Benjamin, Good Luck. Denver is a tough market in that the competition says you are going to do deals higher than the 70% rule. There are many reasons to stick to 70% ARV, but an experienced investor would go higher in Denver because the property values are higher. The 70% rule says you will be successful or you can refinance a project and get all or most of your cash back if you can not sell quickly (then it is a BRRRR). I can not see myself investing in a $300,000 to $400,000 project and only netting $25k to $50k. If you net at least 15% it is a good deal on higher numbers. Access a good rehab profit calculator to understand the costs and the profit and understand what you are putting at risk to know what you should make.