If you’re a seasoned investor, or a new-be wanting to get your feet wet, Denver investment properties need to be on your radar! Denver “Fix and Flips” are currently profiting 52% higher returns than the national average with an average gross profit of $91,000 per real estate investment project .
It is my opinion that your success as a real estate investor is largely due to the team you have on your side: contractors, builders, architects, lenders, Realtors, etc. It is essential you’re working with team members that specialize within this industry, and it doesn’t hurt if they are active investors themselves.
That’s where I come in. I’ve been helping investors with Denver investment properties for over 10 years, and am personally active in the Denver market. Attached is an architectural rendering of the project I’m personally doing in northeast Denver. I’m always willing to sit down with clients and discuss the numbers and economics of these types of projects, which could range from a basic Denver fix and flip scenario, to a Denver development project where you’re taking down an existing structure and building a new single family home, duplex, or apartment building. One of things we will discuss is how to find these hidden gem investment properties. Sources for investment properties don’t always come from the MLS search. Although the multiple listing service can be effective to sometimes find homes for sale, land and multiple unit properties, there is much competition among buyers. But, I find my properties and fix and flips from a variety of listing sources. Sometimes, word of mouth works too though my various real estate marketing resources.
One of the main tools that I personally utilize in analyzing potential projects is what my brokerage calls the Neighborhood Price Change Map. Quarterly we release this color coded Denver area map that breaks down how much appreciation, or depreciation, each sub area of Denver is receiving. The map also states what the average days on market is, the average sales price, what the percentage is under contract, how many active properties currently are available, solds, and MOI (months of inventory). This info is an extremely valuable tool to use when putting together an investment strategy.
Currently, Denver’s real estate market is on fire. Inventory is extremely low, demand high. Foreclosures and short sales just don’t exist in our market anymore. In this environment investors rarely are able to buy equity, market value acquisitions are the norm. I work with my clients to show ‘value add’ scenarios. Many times zoning comes into play. For duplex projects, we’ll need the zoning to be: U-TU-B/C/D. This code stands for Urban, Two Unit, then the lot size. I’m seeing the average profit around 150k for duplex projects, well worth sitting down with me to discuss further. Another zoning code I feel is a ‘value add’ is ADU (accessory dwelling unit). My current project is actually zoned ADU, which allows for another unit/dwelling to be built on the property (usually above the garage). For more info on Denver zoning, check out Denver’s Zoning Code.
I find everyone is in a different spot with their investing, some seasoned veterans, others just getting started. The best approach is to ask for a consultation at my office or a local coffee shop. We’ll put together a game plan that caters to your goals and objectives. I enjoy these consults and am looking for long term clients to work with, not just a deal here or there. Looking forward to talking with you soon!