If you are looking to scrape and rebuild for resale right now, be careful!

Especially if you are looking to resell right now. If, on the other hand, if you intend to be an owner occupant, this is probably a good time. Still, you will want to carefully for eventual resale. Personally, I would avoid "urban pioneer" neighborhoods and look for the safest neighborhoods. These areas deteriorate less in bad markets and tend to appreciate more in good markets.

But even some of these desirable, safe neighborhoods are oversaturated with scrapes right now. University Park and University Hills are two good examples along with Bonnie Brae.

I would agree that parts of old Englewood would be worth considering. You might also consider the Wilshire neighborhood near the University Hill shopping center. Good luck!

Myke - thanks for the answer. Here we call them simply tear-downs. :)

glen - scrape the house off the foundation and start over.

I am from Florida, so could someone explain what the term scrape means? I not heard that term before. Thank you.

Neighborhoods-- close to Downtown Denver.

Hi there Tom,
Working in the real estate market 30 some years as both appraiser and broker, I can offer some creditable options for you. It's dependent on your budget to start with...Always Crestmore, Bonnie Brea, Cherry Creek are the best bets and are at the HIGH end. Then look at Washington Park & Platte Park. It's gets a little scary the lower you go - and you really need expert knowledge to make sure you are not in a position of making an over-improvement for the market. A silk purse surrounded by pigs ears is not what you want.
I have first hand experience in this arena so if I can be of service, Let Me Know ---(720)291-5410

Highlands and LoHi Lower Highlands

I'd recommend the Historic Baker District, it's uber-fashionable and rapidly up and coming.

In my opinion the area is Highlands in North West Denver or North of Sloans Lake. Just drive the area you will see the scrapes have already started. It reminds of of what Cherry Creek looked liked many years ago...check out the area I beleive it speaks for itself.

Two Words. Old Englewood.

Nice lots, Old homes, Close to Denver, 1000 new jobs at River Point and is bordered by Cherry Hills.

I agree with both answers below and want to Echo Sarah's recommendation of the Berkely area near Tennyson Street. A good rule of thumb is watch where the commercial developers are going. They do a lot of research before going into a neighborhood relative to demographics, traffic counts, etc.. Other areas in Northwest Denver where you can still find some properties for possible scrapes are Jefferson Park, East Highland and Sunnyside.

I lived on Huston Lake growing up. I turned out ok- but I didn't drink the water. Just kidding. Liked the agents advice below. Watch to see where other investors are building. Typically, a good indicatior. My personal opinion Tennyson Street in North West Denver. Projected to explode- There are tons of scrapes happening. Check it out! Best of luck to you!

Hi Tom,
After selling homes throughout the Metro Denver area for the past 30 years, I have learned a few things about real estate. Specifically, regarding your question about targeting the Athmar Park area, I would suggest to only consider purchasing property in subdivisions that have shown a strong interest by other builders. You might be able to buy lots for less money in the Athmar Park area today since the area has not been discovered for scrapes and rebuilds yet. BUT, you may wait a long time to actually find a buyer who is interested in being one of the first in the area to purchase your new much more expensive home in the area. In today's very tight real estate market, that is a risk that I would not think would be in your best interest.

Athmar Park also has a very high rate of foreclosure actions in the subdivision. A high foreclosure rate does not indicate a strong area for builder speculation in the near future. On the other hand, if you have the staying power to buy Athmar Park homes and rent them out for several years, you COULD be buying lots at a very good price today. The excessive foreclosures in the area have depressed the prices in the area. But, you still would be speculating on the area. It is always safer to follow other builder money into a subdivision than it is to be the leader. Let me know if you would like more specific statistics on foreclosures by neighborhood. I would be happy to assist you.

There are much better areas of town to consider purchasing property in right now. Specifically: the north side of Eisenhower Park and the Cory/Merrill subdivision would be where you would find the greatest success - and other successful builders. Other areas to consider would be University Park, Hilltop and Observatory Park if your development budget is in the $800,000 plus range for a finished home.

Best of luck to you in your search.