FLIP OR FLOP

Did you know that flipping homes can be a real flop? For most people, this is their next ‘get rich quick’ scheme: buying up property and flipping it. They sit at their work desk and think about what they can do to make money. They can almost taste it, flipping property in Kansas City will help them to pull in that extra cash and be able to live the American dream. Though there is some truth to that, there is also a lot more involved in the process and it can become a major flop if they are not aware of the dangers. So, here I am. I give you the challenges and the local 101 of flipping property in Kansas City.

“Flipping Houses for Dummies” has it right when they state at the beginning of their book that, “If you’re not a homeowner, sell the book (Flipping Houses for Dummies), use the proceeds as a down payment toward buying your own home and then come back to the book in a couple years and the authors will be waiting for you.” Why would they say that? It seems strange, right? Nope, not strange. They are correct. The first challenge(s) of flipping property in Kansas City cannot be understood or met easily if you haven’t already gone through the emotional and financial struggle of purchasing a home for yourself. Who would purchase twenty homes at one time if they’ve never even purchased one?

Nationally, RealtyTrac Vice President Daren Blomquist states that, “The challenge for flippers in 2015 will be finding inventory to flip,” he added. “Flippers ideally want to buy distressed homes that provide them with an opportunity to add value in markets where there is good affordability and ample demand from buyers for the finished flip product.” Kansas City has so many new houses being constructed that we need to focus on finding the distressed homes that are in a location fit for lower purchase but that can bring that higher yield (ROI). Our real estate market is looking for homes that have been updated to fit more of the ‘modernized’ homes that are equal to some of the newer housing going in around the Kansas City area. This is the next challenge in flipping property in Kansas City. You must find the best houses to buy, update, that will yield a good ROI.

Last, but not least, once you have the finances and find the property, you then have to find the contractors that do quality work for a reasonable price. If you get a great deal on the property and then the contractors don’t do very good on the remodel and charge you too much, your ROI will be low and it will be a very frustrating process. You want a dependable team who will get in and get the job done right at a reasonable cost to you.