Investor Tips: Can you still flip homes in Kansas City?
SCUDO has had several Investors asking this question lately given the rise of demand in our local area. We are in a competitive market, where “good” read: well priced, homes are going within days, if not hours of being listed on the MLS. This creates frustration for most Buyers, and additional frustration for our Investors.
The short answer to the question: Yes
The long answer: Yes, but you may need to update your strategy. While high demand can be seen as a problem on the Buying side as an Investor, it’s great when you’ve “flipped” the property and are ready to list. Every problem has a solution, here are a few of our tips to you:
- Free your mind of what you “should” be paying. You may have been able to buy homes is the same neighborhood for much less a few short months ago, and now can’t justify what feels like over-paying for the same type of properties. You have to get over this. If you’re paying more, guess what, your end Buyer will be willing to pay more also!
- Know where you stand, and when you’re willing to bend. Most savvy investors have certain numbers their property has to hit before they will consider it. Be willing to categorize what’s “ideal,” what’s “decent,” and what’s worth walking away from. We’re not suggesting being reckless- always use conservative numbers in your analyzing and be safe. If a deal is teetering on the edge of decent & worth walking away, we’ll typically encourage our Investors to walk away. Just know those excellent numbers you could have hit in previous markets may just be decent now, but the that doesn’t necessarily mean the deal isn’t worth doing.
- Try a new market (with help). Don’t be afraid to branch out, but do your research. Visit the area, talk to the neighbors, hire an Agent who knows that area better than anyone and has industry connections for the work.
- Direct Mail. The best way to beat competition? Don’t have any! Avoid bidding wars and overpaying by going directly to the home owners. KC & the surrounding suburbs are still flooded with “original Owner” established neighborhoods. Keep marketing until there’s no fixer-upper house left! Spoiler Alert: as long as there are homes, there will be “fixer-uppers.”
Have specific questions about the Kansas City market, or real estate investing? Want more information on a property? Give us a call, or fill out the form below for a rapid fast response!