One of the more well-known methods of real estate investing involves buying a house at an under-market price (usually because the house needs significant repairs), completing a smart and cost-efficient renovation, and then selling the home at a premium. This is commonly known as "fix-and-flipping".
Where are the deals? Where do you start? How do fix-and-flip results compare from one neighborhood to another? What kind of gross margins should you expect in certain areas?
I'd start with this very helpful map. It provides a great overview of the area for current and future investors. I have a map for the entire Denver metro area, but you'll see that I've zoomed in to one area to briefly explain the important elements for you.
Where are the deals? Where do you start? How do fix-and-flip results compare from one neighborhood to another? What kind of gross margins should you expect in certain areas?
I'd start with this very helpful map. It provides a great overview of the area for current and future investors. I have a map for the entire Denver metro area, but you'll see that I've zoomed in to one area to briefly explain the important elements for you.
Let's look at the "Old Littleton" area. Over the last 3 years, here's what we know about this spot:
1. A total of 8 properties were fix and flip properties.
2. The average purchase price of these 8 properties was $187K.
3. The average sale price of these 8 properties was $337K.
4. As a result, the average gross margin was $150K. It's important to remember that this does not indicate the investors' profits earned - this doesn't take into account the cost of the rehab that was done on the home to sell it at that price.
Do you have a specific area you'd like to learn about? Feel free to message me, contact me at 303-929-7844, or email me at Drew@mynewera.com. I'd be happy to help.
All the best,
Drew Morris
1. A total of 8 properties were fix and flip properties.
2. The average purchase price of these 8 properties was $187K.
3. The average sale price of these 8 properties was $337K.
4. As a result, the average gross margin was $150K. It's important to remember that this does not indicate the investors' profits earned - this doesn't take into account the cost of the rehab that was done on the home to sell it at that price.
Do you have a specific area you'd like to learn about? Feel free to message me, contact me at 303-929-7844, or email me at Drew@mynewera.com. I'd be happy to help.
All the best,
Drew Morris
"Denver Area "Fix and Flip" Map" by @Realtor_Drew on @LinkedIn https://t.co/C7WfHa5mtO #denverrealestate #denver #investing #Colorado
— Andrew (Drew) Morris (@Realtor_Drew) December 9, 2015
