House Flipping for Beginners in Colorado: Denver Metro Guide

A beginner flips a house in Colorado by buying at no more than 70% of the finished value minus repair costs, fixing the systems Colorado buyers inspect first (roof, foundation, sewer, furnace, radon), and listing at a price the Denver metro comps support. In the Denver metro that means a first flip needs $60,000 to $120,000 of cash on hand, a 4 to 6 month calendar, and a contractor who has pulled permits in that city before. This guide answers the questions Front Range beginners ask before their first project.

How much money do you need to flip a house in the Denver metro?

Plan on $60,000 to $120,000 in cash for a first flip on a $400,000 to $500,000 purchase. That covers a 10% to 20% down payment on a hard money loan, points and closing costs, the first two months of interest, and a repair reserve. Hard money lenders in Colorado fund 80% to 90% of the purchase and part of the rehab, and they charge 10% to 13% interest plus 1 to 3 points.

The purchase is the small number. On a Denver metro flip the total budget breaks into four buckets:

• Purchase costs: price, lender points, title, and recording. Budget 2% to 4% of the price on top of the down payment. Read the line items on our Colorado closing costs guide.
• Rehab: $30 to $60 per square foot for a cosmetic Front Range flip, $80 to $150 per square foot when the kitchen, baths, roof, and furnace all go.
• Carrying costs: 1% to 1.5% of the purchase price per month once you add loan interest, property tax, builder's risk insurance, Xcel Energy, and Denver Water or the local district.
• Selling costs: 5% to 7% of the sale price for commissions, title, and the concessions Denver buyers ask for in 2026.

Does the 70% rule work at Denver prices?

Yes, and it is the number that keeps beginners solvent. Maximum purchase price = 70% of the after-repair value (ARV) minus the repair budget. On a house that sells finished for $600,000 with $80,000 of work, the most you pay is $340,000. Denver metro sellers rarely take that number on the open MLS, which is why finding the deal is the whole job.

The Denver metro median closed price ran in the $580,000 to $620,000 band through 2025 and 2026 (DMAR, the Denver Metro Association of Realtors). At that level the 30% margin has to cover carrying costs, selling costs, and profit. If the margin drops below 20% after all costs, walk away. Our Colorado market reports show the current medians by county.

Where do first-time flippers find houses that pencil in Colorado?

Beginners find their first deal in one of five places:

• Estate and out-of-state sellers: homes held 30 years or more in Aurora, Lakewood, Arvada, Northglenn, and Englewood with original 1970s kitchens.
• Distressed listings: our Colorado distressed homes, foreclosure listings, and HUD homes pages update from the MLS daily.
• Expired and withdrawn listings: homes that sat 60 days or more because the condition scared financed buyers.
• Public trustee sales: every Colorado county runs foreclosure auctions through its Public Trustee office. Cash only, no inspection, so this is a second-flip source, not a first.
• Wholesalers: verify the ARV yourself with closed comps; never trust the number on the flyer.

Search by price, condition keywords, and days in MLS on our Colorado home search, then set an alert for the ZIP codes you can drive to in 20 minutes.

Which Front Range cities are best for a first flip?

Pick a city where the buyer pool is deep at $450,000 to $650,000 and the housing stock is 1960 to 1990 vintage. That is where cosmetic flips return the most per dollar.

Start with the Aurora home search and the Lakewood home search; both cities have the highest count of homes that fit the 70% rule.

What Colorado-specific problems ruin a flip budget?

Five items sink Front Range flips, and none of them show up in a national flipping course:

• Hail roofs: hail season runs May to September along the Front Range. A roof over 15 years old fails the buyer's inspection and the buyer's insurer. A new asphalt roof on a 2,000 sq ft home costs $12,000 to $25,000; Class 4 impact-resistant shingles add $2,000 to $5,000 and earn an insurance discount that buyers ask about.
• Bentonite clay: expansive soils across Denver, Aurora, Highlands Ranch, and Castle Rock heave slabs and crack foundations. A structural engineer's letter costs $400 to $800; piers run $1,500 to $3,500 each. Get the engineer out before you close, not after.
• Sewer lines: clay and Orangeburg pipe under pre-1975 homes. A sewer scope costs $150 to $300; a replacement costs $8,000 to $20,000. Every Denver buyer's agent orders the scope.
• Radon: Colorado sits in the EPA's highest radon zone. A mitigation system costs $1,200 to $2,500. Install it and list the house as mitigated.
• UV and freeze-thaw: at 5,280 feet the sun destroys exterior paint, deck stain, and window seals. Budget for exterior paint every time; buyers see failed seals on the walkthrough.

Do I need a permit and a licensed contractor to flip in Denver?

Yes for anything beyond paint and flooring. Denver Community Planning and Development, and the building department in every suburb, require permits for electrical, plumbing, mechanical, structural, roofing, and window changes. Electricians and plumbers must hold a Colorado state license through DORA. Unpermitted work surfaces on the buyer's inspection and in the city's records, and a buyer's lender will not close on an unpermitted basement bedroom.

Read the Denver zoning, ADU and historic district guide before you buy in a historic district; exterior changes there need a separate review that adds 4 to 8 weeks.

For homes built before 1978, hire a contractor who holds the EPA Renovation, Repair and Painting certification. Denver's housing stock in Baker, Berkeley, Sunnyside, and Platt Park is almost entirely pre-1978.

How do hard money loans work for Colorado flips?

A Colorado hard money lender funds 80% to 90% of the purchase and 100% of an approved rehab budget, released in draws after inspection, at 10% to 13% interest with 1 to 3 points, on a 6 to 12 month term. Interest-only payments run $3,000 to $4,500 a month on a $400,000 loan. The loan sits on the purchase price, so the 70% rule is what protects you from a lender's terms, not the other way around.

A beginner with strong credit and a primary residence has a second path: a conventional or FHA 203(k) purchase of a house you live in while you fix it, then sell after the two-year capital gains exclusion. Mike Oswald, VP of Mortgage Lending at Rate, NMLS 261003, Equal Housing Lender, prices both renovation loans and investor loans. You are free to use any lender. Compare programs on our Colorado financing page.

How long does a flip take on the Front Range?

Four to six months from closing to closing. Cosmetic flips run 6 to 8 weeks of work; full rehabs run 12 to 16 weeks once permits are in. Add 2 to 3 weeks for permit review in Denver and 1 to 2 weeks in most suburbs. The Denver metro median days in MLS ran 30 to 45 days through 2025 and 2026, so budget 45 days on market plus 30 days to close.

Winter changes the math. Exterior paint, concrete, and roofing stop when overnight lows fall below 35 degrees, which happens from November to March. Schedule exterior work for April to October and interior work for the cold months.

What repairs do Colorado buyers pay for and which ones do they ignore?

Denver metro buyers in 2026 pay for a new roof, a new furnace and AC, a mitigated radon system, a scoped sewer, and a kitchen with quartz counters and a gas or induction range. They ignore high-end tile, smart-home packages, and a $40,000 primary bath in a $550,000 house.

Spend on what the inspection report lists and what the listing photos show. Skip the rest. Our adding value before you sell page ranks projects by Front Range return.

How do I price a flipped house to sell fast in Denver?

Price at the closed comps from the last 90 days within a half mile, not at the finished value you hoped for. A flip listed 3% over the comps sits 30 extra days, and 30 days costs $4,000 to $7,000 in carrying costs on a typical Denver metro project. The Kenna Real Estate Group prices flips with the same Smart Pricing Report it runs for every seller, then markets the home through our full listing process.

What must I disclose when I sell a flipped house in Colorado?

Everything you know. Colorado sellers complete the Colorado Real Estate Commission's Seller's Property Disclosure, and a flipper who lived through the rehab knows more than the average owner: the foundation report, the sewer video, the permit history, and any water event. Disclose it in writing. Buyers who discover undisclosed defects after closing sue, and Colorado courts side with them when the seller had actual knowledge.

How are flip profits taxed in Colorado?

A house held under 12 months and sold for profit is taxed as ordinary income federally, plus self-employment tax when the IRS treats you as a dealer, plus Colorado's flat state income tax. On a $60,000 profit that means $18,000 to $27,000 in tax for most beginners. A house held over 12 months qualifies for long-term capital gains rates. Talk to a Colorado CPA before you close the purchase, not after you close the sale.

Should I flip or hold as a rental in Denver right now?

Flip when the ARV margin after all costs exceeds 20%. Hold when the finished house rents for 0.6% or more of your total cost per month and you can refinance out of hard money into a 30-year investor loan. Denver rents for a renovated 3-bedroom run $2,400 to $3,200 a month in 2026, which pencils for a hold at a total cost under $450,000 and fails above that. Our Colorado rental property checklist walks through the hold math, and the Colorado fix and flip guide covers the flip side in detail.

Where to go next

• Colorado real estate investing hub
• Fix and flipping in Colorado: the comprehensive guide
• The new type of investor flipping homes in Denver
• Inspection red flags that kill Denver home sales
• Financing fix and flip houses in Greeley
• Meet the Kenna Real Estate Group agents

Talk to the Kenna Real Estate Group

The Kenna Real Estate Group at Keller Williams DTC finds off-market and distressed houses for Front Range investors, runs the ARV comps before you write the offer, and lists the finished house at the price the comps support. Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. Or search every home for sale in Colorado and set an alert for flip candidates in your ZIP codes.