Summer may be coming to a close, but the water is still warm in the housing market. If you’re considering getting started with fix and flip properties, it’s a good time to jump in.
Denver retains its place as one of the tightest areas in the country for home availability, and the percentage of single-family homes for sale slipped by 36.2 at the end of July compared to July of 2016, according to a recent article in The Denver Post. But a downturn for this super-hot region is predicted to begin in late 2019. Your best return on investment will come if you act sooner, rather than postpone.
Follow these tips for investing in a Denver property that will pay off, despite predicted dips in the long-range forecast:
1. Target a Rising Neighborhood
Denver has invested in its downtown, and areas within close proximity are gaining in popularity. Startups are flocking to RiNo, Union Station and surrounding areas, bringing with them millennial talent looking to live and socialize close to work. Previously neglected areas like Five Points, Whittier and Skyland are all on the rise.
2. Locate Easy Access to Public Transportation
Light rail and bus lines from up-and-coming areas such as Curtis Park and Jefferson Park offer easier commutes to downtown, the Tech Center and Centennial.
3. Don’t Discount Walkability
Neighborhoods with higher ratings for walkability are predicted to weather any downturn and gain in value. Berkeley, Lincoln Park and Sunnyside count here.
4. Look at the Lower End
The lower end of the market is holding strong, with housing under $400,000 continuing to move quickly throughout the area, as reported in July of 2017.
When you find the right property for fix and flip, zero in on hard money and make your move. Work with a lender that’s on your side. Here’s how you do it…
5. Close Quickly
Go for a loan with a quick approval and fast closing. A Merchants Mortgage Fix & Flip Loan is typically approved within 48 hours, and closes in 5-7 days.
6. Fine a Lower Interest Rate
Of course you plan to flip fast and not accrue interest a minute longer than necessary, but in case of any unforeseen holdups, keep that interest rate down.
7. Figure Out the Fees
It’s easy to overlook the fees involved in purchasing a property. You want to avoid prepayment fees altogether, and find a lender whose fees are cheaper in general.
8. Get a Loan that Includes Repairs
Once you get that loan, do you have enough to out-of-pocket the fix up? Merchants Mortgage offers Fix & Flip Loans that extend beyond the purchase price to include repairs on the property.
With a cooling not predicted to creep in before late 2019, you have over two years to profit nicely from Denver’s strong housing market. Soak it up while it’s still hot.