House flipping in Denver, Colorado Springs booming

Posted at 4:30 AM, Jun 08, 2017
and last updated 2017-06-08 08:45:41-04

DENVER -- House flipping in the Denver metro area is becoming more popular than other parts of the country, according to ATTOM Data Solutions.

The real-estate data company looked at 2,000 counties around the country and found that the highest number of financed home flips was occurring in Denver. The hottest area is in the 80221 zip code with 30 flips in the first quarter. 

But the Mile High City isn't the only market in the state where this trend has taken off.

Colorado Springs showed the highest number financed home flips in the first quarter of 2017. Seattle is another market that is showing house flipping success. 

Financed home flips are when people turn to finance companies and take out a short-term loan to fix and then flip a property

"They can sell them extremely quickly, and that makes it a great flipping environment, and its less risk for the lenders," said Daren Blomquist. 

Since homes sell on average within 60 days in the Denver metro, these finance companies are willing to take the risk. 

A benefit to homeowners is that an increase in fix and flip homes in a neighborhood can increase property values. 

"When someone goes to buy your home, that's not a flip. They're going to look at the sale comparable to what other homes are selling in the neighborhood," Blomquist said. "Those flips are going to be included.”

However, the downside to that is it can inflate the home prices throughout the neighborhood. Flipping a home can raise the value to about $90,000.