Home Buying in Denver>Question Details

John, Home Buyer in Denver, CO

What are good areas in Denver County to buy, fix up, and sell homes? No suburbia!!!

Asked by John, Denver, CO Fri Feb 5, 2010

Details: The more trashed and broke of a house, the better. I am one step away from a contractor and do most all of the work myself. I have about $150K. I need my first house around April 1st. This is my career so I will be doing it over an over. I prefer historic houses but also like giving character to homes in good areas that are lacking.

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9
John,
Here's a couple things to consider about the Denver market. First of all, it's not a buyers market below $250K, it's a strong sellers market. The market is up 18% from last year in the below $250K price range. Also, you won't be able to purchase a Short Sale with your 4/1 deadline, so it will have to be a Bank Owned property or conventional sale. The REO properties in this price range are selling in less than 10 days, no kidding, with multiple offers, above asking price. So you have to be really prepared to strike and prepared to loose a few.

In regards to geographic location, my advice is this. Find a property close to where you live now. The time and energy spent travelling to this location will be considerable and a big factor in your efficiency. Even though you may not be a realtor, you will become an expert on the neighborhood in which you live and work, and this knowledge will help you tremendously as you move forward.

One more point. Your market will be the First Time Home Buyer, because most people do not have extra cash to fix up homes. So think in terms of what does this demographic want in a new or old home?

Best of luck,
Chip Bruss
2 votes Thank Flag Link Fri Feb 5, 2010
For your price you will not be buying too much in Historic Areas. Try Baker.
Here is a map of the Neighborhoods and y\you need to start small. I have seen many, many try and fail at this. I have coached a few good flippers. It is not easy and maybe you should call me.
Brian

http://www.kennarealestate.com/denver-neighborhoods.php
1 vote Thank Flag Link Fri Feb 5, 2010
A good friend of mine does this professionally and he is only working in Aurora. Why? Because the prices are great, which means he can resell them for a lower price, and there is a lot of demand there for affordable housing. It seems to be working for him
Web Reference: http://www.BandyHomes.com
0 votes Thank Flag Link Tue May 18, 2010
Park hill, Congress Park, Platt Park, even parts of Englewood. Please check out link to homes.
Brian
0 votes Thank Flag Link Thu May 13, 2010
As a fix and flipper and real estate agent, I stick to the City of Denver. My favorite neighborhood where I have bought and renovated six homes is East Park Hill (Chamberlain). These are solid brick ranch homes on large lots that were built from 1947 to 1952. Unfortunately, they ended up being in the flight path for Stapleton Airport – The busier it got, the less desirable the neighborhood became. Now that the airport is closed and is being redeveloped with shopping centers, office buildings and homes with prices for all ranges of income, East Park Hill has become a red-hot redevelopment area. It is also just to the east of Park Hill (duh!) which has always been one of Denver’s most popular neighborhoods. Though it’s harder to find homes at the excellent pre-renovation prices of a few years ago, you can still find two bedrooms, one-bath homes in your price range with money left over to renovate them. These homes have a one car attached garage, which I have turned into a master bedroom and bath. This will give you a nice three bedroom, two-bath house on a great lot in a great neighborhood.
0 votes Thank Flag Link Wed May 12, 2010
Denver is hot- 31 offers 100k over asking got my last buyer in- Cole Neighborhood. Smoking Hot! Needed 100k in work/old houses do that :) However, today I closed at 135k needs 10k- my investor is flipping for 210- nice profit, it's worth 235k but he wants it gone day one. So... it's in Commerce City :) Suburbia. It's all in what you can get really. If there is cash money- does it matter? I am an REO broker- call me if you want to be on my list- direct line 303-598-8738. Success in 2010!!!
0 votes Thank Flag Link Wed Feb 17, 2010
Well no suburbia is a good decision. City neighborhoods with something to draw people to them, like walking districts or being proximal to a good school be it private or public, have been able to maintain stable property values and shorter days on market. Why don't you check out the Berkeley-Highlands-Sloans Lake area? Or maybe LoHI? Of course there is always Congress Park, Cap HIll, Alamo Placita park and---oh you get the idea the potential is limitless- the key is margin. Can you buy the property cheap enough? Then you need to budget your "fix." Don't over-improve for the neighborhood, but likewise don't cut corners where you shouldn't. Many a fix-n-flipper has been nipped on the tushy for cutting corners where they shouldn't of. If this is to be your livelihood- take pride in your work and invest time in researching neighborhoods, properties etc. I recommend West Highlands because it is one of the few neighborhoods that wasn't hit hard with receding prices. It's a very fun and trendy little area just minutes from Downtown. with your budget at 150k it will take a bit of digging to find an opportunity and an agent who is a tough negotiator. But there are lots of neighborhoods that can work for fix-n-flippers. Also, there is a little known mortgage company here in town that caters to fix-n-flippers. After you get your fewet wet on your first one perhaps you will want to explore them as an option to help you grow your business. BTW why are you waitign until April 1 to buy. If you bought an easy fix- closed quickly an did a down and dirty job in 30 days or less you could still come back on the market in time to catch the tail end of the 1st time home buyers incentive program, maybe. WHAT EVER YOU END UP DOING- BEST OF LUCK - I AM EXCITED FOR YOU ABOUT THE IDEA OF STARTING YOUR FIX-N-FLIP BIZ.
0 votes Thank Flag Link Fri Feb 5, 2010
Three areas will likely work - as stated below, the Baker neighborhood, as well as The Highlands and between 20th and 27th and east or west of Federal! All fast active areas for this type of "career"!

Susan Webber
Keller Williams Preferred Realty
11859 Pecos St ste #200
Westminster CO 80234

303-539-5467
0 votes Thank Flag Link Fri Feb 5, 2010
John,
I have Purchased, Totally Designed, Remodeled and Resold 55 homes in the last 15 years. Of these homes, 85% of them have sold for the asking price or more in the first 15 days on the market. (they were placed back on the market within 50-90 days after the original purchase).
The remodel costs have been between $40,000 and $140,000.
Extensive research is the key (including purchase price, location and competition. I am consistently thinking resale and what the demographic buyer wants; throughout the entire process and do the same for my clients.) Over 80% of these homes have been in older neighborhoods.
Let me know if you would like to at least talk about your ideas and resources-I have been in the Real Estate Industry for 16 years.

Steve Decker
Herman Group Real Estate
303-775-6313
info@stevedeckerhomes.com
0 votes Thank Flag Link Fri Feb 5, 2010
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