Colorado has become a popular destination for investment property among house flippers—and for good reason.
Steady population growth, property value appreciation, and economic progress strongly contribute to Colorado’s appeal as a house-flipping state.
With the median home sale price in Colorado at $606,800—up 4.6% year-over-year—and a range of markets to choose from, investors should have no problem finding properties that fit their budget and goals.
In this article, we’re looking at the top five cities in which to purchase your Colorado investment property, your best financing options, and tips for successful investments.
Start your application with Park Place Finance.Is Colorado a good state for house flipping?
Colorado is an excellent state for house flipping.
It recently ranked second nationally in a new study that considered high sales rates, remodeling prices, and an ROI of 20%.
Let’s look at the factors contributing to fix-and-flip investment success in Colorado.
Strong economy
The following industries drive Colorado’s prosperous economy:
- Technology
- Aerospace
- Healthcare
- Tourism
- Advanced manufacturing
- Education
- Energy, including traditional and renewable sources
- Cannabis
The state’s strong economy is a steady draw for people seeking new opportunities, increasing the housing demand.
Population growth
In addition to the state’s economic opportunities, Colorado’s beauty and outdoor recreation attract everyone from young professionals to families and retirees.
A diverse population creates the need for housing at all price points.
Rising property values
What do you get when there’s a strong economy and steady housing demand? Property appreciation!
Fix-and-flip investors are drawn to markets where property values are rising. They can purchase a home, make improvements, and sell it quickly.
Wide range of markets
Colorado’s range of real estate markets allows investors to target everything from luxury properties to more affordable homes in up-and-coming markets.
The state also has a strong rental market, which allows investors to purchase fix-and-flip or fix-and-hold properties and earn rental income.
Appealing lifestyle
Mountains, lakes, rivers, and vast expanses of open land have made Colorado a popular destination for future residents and vacationers.
Popular activities driving demand in Colorado include:
- Skiing
- Snowboarding
- Hiking
- Mountain biking
- Camping
- Fishing
- Watersports
- Rock climbing
- Golfing
- Hot springs and wellness centers
Colorado may be the right state for your next investment if you want to target a population that admires natural beauty and adventure.
How to choose the best cities in Colorado for investment property
Whether it’s your first or 10th flip in Colorado, certain things should be considered before purchasing, including:
- Demand: Look at population growth, economic health, and growing job markets.
- Property prices: Understand what you can comfortably afford, and target cities with prices that fit your budget and have the potential to appreciate.
- Renovations: Consider neighborhoods with distressed, older, or historic homes in desirable locations that allow you to add significant value and resell at a higher price.
- Competition: Highly competitive markets can drive up prices and lower your profits, but they also could result in quicker sales.
- Local economy: Look at the dominating industries in your area of choice to understand what is driving population growth and what this specific population wants and needs in a home.
- Local regulations: Work with local experts to understand what it takes to get permits and execute renovations.
- Neighborhood trends: Target up-and-coming neighborhoods within cities near good parks, schools, shopping, and public transportation.
- Seasonality: Some cities will have peak seasons, such as skiing or other outdoor recreation, that could influence demand.
Partner with a local real estate agent experienced in fix-and-flip investments to help you find your ideal locations and properties.
Best cities for flipping houses in Colorado
The best Colorado cities for house flipping combine affordability, demand, and a strong economy.
Let’s look at our top picks for investment properties.
1. Denver
As the biggest city in Colorado, Denver deserves a spot on our list thanks to its diverse, healthy economy and considerable population growth over the past several years.
However, it’s not for the faint of heart—competition among investors may be intense, but the returns can make it worthwhile.
- Median sale price: $618,000
- Average rent: $1,691 per month
2. Colorado Springs
Colorado Springs is catching up to Denver’s level of intensity but is still known to be a more affordable alternative.
A strong military presence, a growing technology field, and natural beauty bring in military families, young professionals, and retirees.
- Median sale price: $470,000
- Average rent: $1,313 per month
3. Aurora
Aurora is the third-largest city in Colorado. It benefits from its proximity to Denver and its affordability.
The city’s aerospace, healthcare, and education industries keep the population growing, while a mix of older homes and newer developments present numerous flipping opportunities.
- Median sale price: $490,000
- Average rent: $1,495 per month
4. Fort Collins
Home to Colorado State University, Fort Collins is a proud college town with a high quality of life.
The university’s presence makes this a great city for fix-and-hold investments, but there’s no shortage of demand for single-family homes in older neighborhoods.
- Median sale price: $551,000
- Average rent: $1,586 per month
5. Pueblo
Pueblo makes the list because it’s much more affordable than the other four cities, but it is starting to get attention from those who are being priced out of the other markets.
Its lower property prices and growing demand are perfect for investors who need a lower entry point but desire a high ROI.
- Median sale price: $277,000
- Average rent: $945 per month
Considerations for investors and flippers in Colorado
Every state has its own challenges and considerations for investors.
Keep these critical factors in mind as you navigate the Colorado market:
- Weather delays: Unpredictable weather, including heavy snow in winter and severe storms in spring, could cause renovation delays, so be sure to plan ahead
- Energy efficiency: Upgrades such as modern HVAC systems and high-efficiency windows and insulation are attractive to Colorado buyers
- Timing and costs: Competitive cities require careful budgeting—make sure you’re keeping a close eye on your project costs and timelines to maximize your investment
Apply now with Park Place Finance
Fix-and-flip investors need fast, reliable financing.
Park Place Finance has closed over 4,000 loans and funded over $1 billion since 2006.
Our signature fix-and-flip loan product gives investors the flexibility to purchase and renovate, refinance and renovate, purchase and flip, or purchase and hold your next property.
Get started here for a quick rate quote, or give us a call at (866) 407-1599.