The classic Colorado Springs flip is a 1970s or 1980s bi-level with a dated kitchen, a tired roof and a basement that has not been touched in decades. Buyers, many on military orders with a set report date, want those homes finished and ready to move into.
In short: LendingStreet finances fix and flip projects on 1-8 unit investor properties in Colorado Springs and El Paso County, with loans from $150,000 to $5M+, up to 90% of total cost and up to 100% of the rehab budget on some programs. Closings can happen in as little as 10 days, payments are interest-only and you can exit by selling or by refinancing into a DSCR rental loan. In this market, foundation and soils issues, roof condition and permit timing with the regional building department deserve as much attention as finishes.
Much of the city's resale inventory was built between the 1960s and 1990s: ranches and bi-levels in Security-Widefield, Village Seven, Cimarron Hills and Austin Bluffs, split-levels in Rockrimmon and around Palmer Park, and two-story tract homes further north. The older core has Victorians in the Old North End and small early-1900s homes on the Westside and in Old Colorado City.
Finished flips sell to military families, local first-time buyers and households relocating from more expensive Front Range markets. Military buyers often use VA financing, which has its own property condition standards, so a flip that is clean, safe and fully functional sells faster.
Price ranges vary sharply by area. A flip in Security-Widefield or Fountain sells at a very different number than one in Rockrimmon or Briargate, and the finish level should match. Over-improving a south-side bi-level with luxury finishes rarely pays back, while a north-side home with builder-grade finishes can sit.
Some line items show up on Colorado Springs inspections far more than in other markets.
| Issue | Why it shows up here | What to do before closing |
|---|---|---|
| Expansive soils | Bentonite clay soils swell and shrink and can move foundations and slabs | Have a structural engineer review any cracks or heaving |
| Hail-worn roofs | Frequent hail storms age roofs quickly | Inspect roof and gutters; price a replacement |
| Radon | Colorado has high radon levels in many areas | Test early; budget for mitigation |
| Basement finishes | Older unpermitted basement bedrooms are common | Confirm egress windows and permit history |
| Historic overlay | Parts of the Old North End have preservation review | Check exterior change rules before you buy |
In Colorado Springs and most of El Paso County, building permits and inspections run through the Pikes Peak Regional Building Department rather than the city alone. Structural work, electrical, plumbing, mechanical and finished basements generally need permits. Contractors must be licensed with the department for many trades.
Plan the permit timeline into your hold period. A flip that waits two extra weeks for a framing or electrical inspection pays two extra weeks of interest.
Many Colorado Springs flips also involve finishing or legalizing a basement. Bedrooms need proper egress windows, and finished basements need permits and inspections. Done right, a legal basement bedroom can add meaningful value to a bi-level.
This example is illustrative and not a quote. An investor buys a 1978 bi-level near Widefield for $342,000 and budgets $78,000 for a new roof, kitchen, two baths, flooring, paint, radon mitigation and egress windows in the lower level. Total cost is $420,000, and at 90% of cost the loan is $378,000, with the rehab funded in draws.
Over a 5-month hold, estimated interest-only payments total about $16,538, and taxes, insurance and utilities about $1,691. Buying costs are about $6,500. If the finished home sells for $510,000 with about $33,150 in commissions and closing costs, estimated profit before income taxes is about $32,122, on about $66,728 of cash in the deal. Most of the margin depends on the sale price being supported by recent finished sales nearby.
Loans are sized on total cost, purchase plus rehab, with up to 90% of cost and up to 100% of rehab on some programs. Rehab funds are released through draws after each phase is inspected. The after-repair value, supported by recent comparable sales of renovated homes, caps how much total leverage makes sense. We order a valuation on flip loans.
Payments are interest-only, and the term is short. Loans run from $150,000 to $5M+ and cover 1-8 unit residential properties.
Peak PCS season runs from late spring through summer, and many relocating families house-hunt on a tight window. A flip that lists in May or June is selling into the busiest buyer pool of the year. Winter listings can still sell, but expect more days on market and plan for the extra carry.
Watch your loan maturity as well as the listing date. If a flip finishes in October, consider whether you will list immediately into a slower season or rent it and refinance, and talk to us about both options before the work is done.
If the resale market softens, a renovated Colorado Springs home can usually be leased quickly to military or local tenants. A DSCR refinance then pays off the short-term loan. Run that backup plan before you buy: if the rent would not cover a long-term payment at about 1.0x, the flip has less room for error.
A vacant house under renovation usually needs a vacant dwelling or builder's risk policy. With hail season running from spring into late summer, make sure the policy covers wind and hail and know the deductible before the roof work starts.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, purchase price, scope of work and recent finished comps through the form below or call (877) 298-1001. We will size the loan on cost, check it against the after-repair value and lay out the draw schedule.
Up to 90% of total cost and up to 100% of the rehab on some programs, within limits set by the after-repair value. Loans range from $150,000 to $5M+.
The Pikes Peak Regional Building Department handles permits and inspections for the city and most of El Paso County.
Take them seriously. Expansive soils are common, and movement can be costly to fix. Have a structural engineer look before you close.
It is a good idea. Colorado has high radon levels in many areas, and many buyers test during their inspection. Mitigation is a modest cost compared with a lost sale.
In as little as 10 days when title, insurance and the scope of work are ready.
Yes. Fix and flip loans cover 1-8 unit residential properties. Nine or more units are commercial.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home must be rented to a tenant, not lived in by you.
VA appraisals have property condition standards, so peeling paint, missing handrails or roof problems can delay a sale. Finishing those items helps your flip sell to military buyers.
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