Flipping Investment Properties in Breckenridge Colorado Ski Country
This basic formula for flipping homes in breckenridge has been posted by Summit Mountain Home, where we specialize in Breckenridge Real Estate (click to search MLS for free) and Breckenridge Foreclosures. You can contact us at 970-406-1385 or click here. Check out some of our Breckenridge Real Estate listings by clicking here.
OK, so you have been watching HGTV (as I do) and have decided that you want to flip properties in Breckenridge. While it is attractive to think of buying on the cheap, using the home for ski season and then selling, there are some basic things to keep in mind.
The basic formula I want you to keep in mind when thinking about how much to pay for a potential Breckenridge Real Estate flipper is this.
Value of Investment Home Post Repairs
Less: Your Total Costs
Less: The profit that makes it worth your effort and investment
Equals: The price you are willing to pay for the property
Value of home Post-Repair:
Determine the post-repair value of the house you’re looking at. Get an appraiser’s help or have a realtor do a CMA based upon resent sales prices. Do not base this value on listing prices.
Total Costs: These costs include closing fees, loan fees, document prep, homeowner’s insurance, title policy, repair costs, interest on loans, property taxes, sales commission, fees, title policy, etc. You want projected costs of all four categories: buying, improving, carrying, and selling. Subtract all costs from the expected sales price.
Profit: Subtract a profit that makes it worth your investment and your time. Afterall, your time is worth something. The time you spend on this project is a lost opportunity cost of time and money you could have invested elsewhere.
Bottom Line: The result is the highest price you can pay. Try to negotiate down, to give yourself more potential breathing room and profit, but if you can not buy for this price or below, walk away.
We have a Certified Public Accountant as part of our team, so if you have any questions in regards to investing in Breckenridge Real Estate, please give us a call or visit our website.
