360dwellings - The Denver Real Estate Blog

Savvy investors are flipping homes for profit in Denver

Posted by Ryan Penn, Denver Real Estate Consultant on December 15th, 2008

This article was posted yesterday by the Denver Post.  We have obviously seen a lot of activity in the fix and flip arena and there are people in Denver making a sound profit in the current market.

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“Of the 150,000 home sales in the metro area in the past three years, about 3,400 homes appear to have been fixed and flipped within a 12-month period, according to an analysis by Your Castle Real Estate. The analysis includes six counties — Jefferson, Arapahoe, Adams, Douglas, Denver and Broomfield.

The gross margin, or difference between purchase price and sales price, on fix and flip homes has steadily increased from an average of $38,792 during the first quarter of 2005 to $80,538 during the third quarter this year.

Montbello North, Park Hill East, Old Thornton and East Colfax are among the more popular neighborhoods for fix-and-flip projects.

Homes priced at less than $200,000 are seeing the most activity.

“We will probably see more fix-and-flip activity at higher price points once the overall market solidifies,”

Read the rest of the article here:  http://www.denverpost.com/breakingnews/ci_11222655

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Ryan Penn founded 360dwellings.com and is a Real Estate consultant serving the Denver, Colorado marketplace.  Ryan works for Buildings & Residences of Denver, a Real Estate brokerage in downtown Denver specializing in commercial and residential Real Estate in the downtown and urban neighborhoods of Denver. Contact Ryan.