Over the past few years, most of our investor clients have been buying Denver foreclosures primarily to “buy and hold” (read: buy, fix and rent out). This had been a dramatic shift from the way many investors had made their money in the prior year, specifically focusing on Denver Fix and Flip homes. The lack of appreciation over the past few years had made these fix and flip homes far less desirable and more difficult to profit on.
However, with the recent increases in housing values we’ve been seeing on Denver homes (8%-13% year-over-year across the metro area) many investors are beginning to move, albeit slowly, back into the fix and flip market.
The dilemma faced by these investors is that in the past 6+ months, the available inventory of homes, specifically Denver foreclosures, has drastically diminished leaving investors to compete with each other and the high number of standard buyers competing for the scarce supply of homes. But as we see the inventory slowly begin to rise, we are seeing more and more investors getting back into the game.
It will be interesting to see if values to continue to appreciate over the coming months, but as with most great markets, by the time many investors decide to move, the best gains are already gone.
If you would like to talk to our team of experst on Denver fix and fllips and Denver Distressed property, give us a call at 303-726-1874.