Flipping real estate in Boulder County is often profitable. By enlisting the help of a real estate agent who can find you a good deal and later list your renovated investment property, you come out ahead. According to a piece by realtor.com, a profitable home flip hinges on the right property at the right time. Because of the potential for huge profits, investors often compete for fix-and-flip homes in Boulder County. As an everyday real estate investor, rely on real estate professionals to steer you toward ideal homes and recommend the ideal upgrades.
Homes sell fast in the area
One great sign that you found a great home to flip is when it’s in a community where homes sell in less than 90 days. Every month your home stays on the market, you pay more in carrying costs such as utilities. On the other hand, you pay more in capital gains if you own a home for less than one year. If you want to pay less in capital gains taxes, consider taking a full year to renovate. After the one year, it’s important to sell quickly with a good real estate agent who recommends staging.
The numbers look good
In order to make a flip worth your whiles, investment experts suggest following the 70 percent rule. The rule means you buy a home for 70 percent of what it is worth once renovated. Even after making repairs and paying closing costs, you should walk away with a 10 to 30 percent return.
Several bedrooms and bathrooms
Most home buyers in Boulder County do not want a home with only one bedroom or bathroom. To make a flip profitable, look for homes with ideally 3 or 4 bedrooms and at least two bathrooms.
Other signs of a good flip include homes in need of cosmetic repairs but with no structural problems. Avoid homes that require new A/C systems, roofs, plumbing and other major repairs. Also, experts warn against buying into an area in which the entire neighborhood itself needs flipping. Check for good schools, low crime and plenty of hiking trails, whole food stores and coffee shops. At Laura Guerra Real Estate, we steer new real estate investors in the best direction. Talk to us about possible fixer-upper homes in Boulder County that are ideal for a fix-and-flip project. For more tips on buying real estate in Boulder County, contact us.