How to Become a House Flipper in Denver and Aurora, Colorado

Becoming a house flipper in the Denver metro comes down to four disciplines: buy at the after-repair value times 70% minus the rehab, fund it with hard money you can carry for six months, pull permits from the right jurisdiction, and list on day 91 so FHA and VA buyers can close. Flippers who hold all four make money on the Front Range in 2026; flippers who skip one lose the profit to holding costs.

This guide gives the numbers behind each discipline for Denver, Aurora and the surrounding counties, the way the Kenna Real Estate Group walks a first-time investor through it. The Denver fix and flip guide is the property-level checklist that goes with it.

Does house flipping still make money in the Denver metro?

Yes, in the price bands where first-time buyers compete and at the discount the math requires. A flip in the Denver metro earns its profit on the purchase, not the sale. The resale price is set by the neighborhood; the only number you control is what you pay.

Run the 70% rule on every candidate: after-repair value times 0.70, minus the rehab budget, equals the maximum offer. On a house that resells at $550,000 with $70,000 of work, the maximum offer is $315,000. The 30% gap covers hard-money interest, two sets of closing costs, the listing commission, holding costs and the profit. Pay $360,000 for that house and the profit is gone before demolition starts.

How much cash do I need to flip a house in Colorado?

Hard money funds most of the purchase and the rehab, but it does not fund all of it. On a $315,000 purchase with a $70,000 rehab, plan on this cash before closing:

• Down payment: 10% to 20% of the purchase, $31,500 to $63,000.
• Points and closing costs: lender points plus title, recording and the Colorado documentary fee, $8,000 to $15,000.
• Rehab contingency: 15% to 20% of the rehab budget, $10,500 to $14,000, because the sewer scope and the panel find something.
• Six months of holding costs: $25,000 to $35,000 (the table below).

That is $75,000 to $125,000 of cash for a mid-priced Aurora flip. Funding the rehab on credit cards is the mistake that turns a slow sale into a loss, so the cash is there before the offer is written.

How does hard money work for a Colorado flip?

A Colorado hard-money lender underwrites the property, not your tax return. The loan is sized to a percentage of the after-repair value, funds the purchase at closing and releases the rehab money in draws after an inspector confirms the work. Terms run 6 to 12 months, interest is paid monthly, and the borrower signs personally for the debt. Get three written term sheets, and read the extension fee, because the extension is where a late flip pays. The hard money in Colorado post covers current loan structures, and the investment property loans in Denver post covers the conventional alternatives for a flipper who holds.

What does it cost per month to hold a flip in Denver?

Every month on the calendar is a line on the closing statement. Here is the monthly carry on the $315,000 purchase above, with a 12% hard-money rate used as the example.

A flip that runs eight months instead of five costs $12,000 to $15,000 more. Schedule the sewer scope, the electrical, the plumbing and the roof in week one, because those are the trades with the longest permit and inspection lead times.

Which permits does a flip need, and who issues them?

Colorado has no statewide building department. The permit comes from the city or, in unincorporated areas, the county, and the address decides which one.

• Denver: Community Planning and Development issues building, electrical, plumbing and mechanical permits, and Denver licenses contractors for permitted work.
• Aurora: the Aurora Building Division, with its own contractor registration. Aurora crosses Arapahoe, Adams and Douglas counties, but the city issues the permit inside city limits.
• Unincorporated Arapahoe, Jefferson, Adams and Douglas counties: the county building department, each with its own fee schedule and inspection calendar.
• Electricians and plumbers: licensed by the State of Colorado through the Department of Regulatory Agencies, and the permit is pulled under that license.

Paint, flooring, cabinets and countertops need no permit. A panel change, a water heater, a furnace, any plumbing relocation, a basement egress window, a beam or a load-bearing wall does. Denver's permit records are public and buyers' inspectors read them, so an unpermitted basement bathroom shows up on resale as an inspection objection and a Seller's Property Disclosure question you have to answer honestly. Read the Denver zoning codes guide for home investors before planning an addition or an ADU.

Where do flips resell fastest in Denver and Aurora?

Flips resell fastest where the finished price lands inside the band that FHA, VA and conventional first-time buyers all reach. In the Kenna Real Estate Group's closings that band runs $425,000 to $625,000 in Aurora and $500,000 to $750,000 in Denver. Above it the buyer pool thins and days on market double; below it the rehab cost is the same but the margin is not.

• Aurora: the 1950s and 1960s ranches and tri-levels in Hoffman Heights, Del Mar and the neighborhoods around the Anschutz Medical Campus; sewer lines and galvanized plumbing are the surprises. Start with the Aurora area guide and homes for sale in Aurora.
• Denver: brick ranches in Harvey Park, Athmar Park, Virginia Village and Bear Valley; 1990s and 2000s two-stories in Green Valley Ranch, where the rehab is cosmetic and the metro district is the item to check. Search homes for sale in Denver.

The top Denver neighborhoods for quick home sales and investment post ranks them by days on market.

Which houses should a new Colorado flipper walk away from?

The first three flips are cosmetic flips. Walk away from the giant remodel until the crew and the lender relationship exist.

• Foundation movement on expansive clay: stair-step cracks, doors out of square, a sloped basement slab. Piers run $10,000 to $40,000 and the engineer's letter takes weeks.
• Pop-tops and additions: structural permits, zoning setbacks and a second set of contractors; the timeline doubles.
• Historic districts: exterior work in a Denver landmark district needs a Certificate of Appropriateness before the permit issues.
• Radon and sewer unknowns you did not test: a $150 to $300 sewer scope and a $150 radon test during the inspection period are the two cheapest insurance policies in Colorado investing.

How does the FHA 90-day flip rule affect my buyer?

FHA does not insure a purchase loan when the seller has owned the house fewer than 91 days, measured from your recording date to the buyer's contract date. Between days 91 and 180, a resale at more than double your purchase price requires a second appraisal and documented rehab costs. In the $425,000 to $625,000 band, FHA and VA buyers are a large share of the offers, so a flipper who lists on day 60 cuts the buyer pool for no reason.

Have the buyer pre-approved before the contract is signed. Mike Oswald, VP of Mortgage Lending at Rate, NMLS 261003, Equal Housing Lender, pre-approves FHA, VA and conventional buyers on renovated homes and orders the appraisal the day the contract is accepted. You are free to use any lender. The Colorado home financing guide covers each program.

How do I price the finished flip?

Overpricing is the flipper's most expensive habit. A flip that goes over budget does not raise the resale value; the neighborhood sets the value, and a listing that sits for 45 days in the Denver metro sells for less than one priced right on day one, after the price cut and the holding costs. Price from renovated comparables sold in the last 90 days inside a half mile, list on a Thursday, and take the strongest offer in the first two weekends. The Smart Pricing Report is how the Kenna Real Estate Group sets that number for its investors.

How is flip profit taxed in Colorado?

A house bought to resell is inventory, so the profit is ordinary income with self-employment tax on top, not a capital gain, and Colorado's flat state income tax applies as well. Holding a property for a year and renting it changes the treatment. Confirm the structure with a Colorado CPA before the first closing. The tax strategies for Colorado real estate investors post explains the choices.

What crew and equipment does a first flip need?

A licensed electrician, a licensed plumber, a roofer with Class 4 impact-rated shingle experience and a general handyman crew you pay by the job. Own the tools you use on every house: cordless drills, a circular saw, a compound miter saw, a temporary power setup for a house whose panel is off, and a truck or a trailer for debris runs to the landfill. Rent the rest.

Where to go next

• Denver fix and flip guide: what to check before you buy
• Colorado real estate investing guide
• Fix and flipping in Colorado: the comprehensive guide
• The new type of investor flipping homes in Denver
• Distressed homes for sale in Colorado
• Meet the Kenna Real Estate Group agents

Talk to the Kenna Real Estate Group

The Kenna Real Estate Group at Keller Williams DTC sends investors the off-market and distressed houses in Denver and Aurora that fit the 70% rule, runs the after-repair value on renovated comparables, and lists the finished flip to the buyers in the right price band. 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 sort by days on market.