A new study puts Colorado Springs among the top 40 cities to transform a “fixer-upper” home into a profitable property.
Colorado Springs is ranked as the 36th-best city to “flip” a house, in the study released Wednesday by financial website WalletHub.
The report compared more than 170 U.S. cities across 29 key indicators of market potential, cost and quality of life, using data set ranging from median purchase price to average full home remodeling costs to housing-market health index.
The average gross profit of “flipping” a house was $60,000 in the first quarter of 2019, according to the report. However, breathing new life into a low-cost property does not guarantee a return on your investment, the study reads.
“If you’re among the millions of HGTV viewers who’ve seen an episode of ‘Flip or Flop,’ you’ve probably thought about the thrill of gutting a house and turning a five- or six-figure profit,” the study reads. “But the process isn’t as easy as the professionals on television make it look. … In other words, don’t get your hands dirty until you’ve learned a thing or two about real estate, construction and how much damage your project could do to your wallet.”
Three Midwestern cities — Sioux Falls, South Dakota, Missoula, Montana, and Rapid City, South Dakota — took the top three spots, with Newark, New Jersey, Yonkers, New York, and Bridgeport, Connecticut, coming in last.
Two other Colorado cities, Denver and Aurora, ranked No. 61 and No. 93, respectively.
Among the 172 cities, Colorado Springs ranked No. 41 in renovation and remodeling costs, and No. 49 in quality of life. Olympic City USA also ranked No. 81 in housing market potential, according to the study.