Denver home buyers can gain instant equity using a purchase and renovate strategy commonly used by house flippers (investors), combined with renovation loan programs such as the FHA 203k or FNMA HomeStyle loan.
Many investors are now shifting their strategies from a buy and flip strategy to a buy, hold, and flip in 5 to 7 years for maximum appreciation. National real estate research firms are predicting we are at or near bottom and Denver is forecast to be one of the strongest markets during the real estate recovery.
Investors buy distressed homes that need renovations, repairs, new appliances. They make money by fixing up these properties and reselling them as fast as possilble at prices below fair market value. They find and buy great deals and resell homes as good deals (below market) taking profit in between a great deal and a good deal.
Home buyers (owner occupants) can use renovation loans like the 203k and HomeStyle loan to up instant equity. Home buyers can buy the same distressed homes that investors are buying, use the renovation loan to fix them up to their standards, and move into a completely renovated home that has instant equity.
Home renovations completed by owner occupants is a very important part of the real estate market recovery, revitalization of Denver neighborhoods, and the recovery of the local economy. Moving into a new home freshly painted, repaired, and renovated is attractive for home buyers in today’s market. Creating instant equity is a big bonus.
Right now is the perfect time to purchase and renovate in Denver. Your best opportunity pick up instant equity in Denver is to find a less-than-perfect home in a great location and renovate it using the 203k loan or FNMA Homestyle loan.
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