Posted on: 5 January 2017
If you're a resident of the greater Kansas City area and are tired of toiling away at your 9 to 5 job, you may be considering the purchase and renovation of a home (a "fix and flip," if you will) to generate some income and give you the confidence you need to continue to fix and flip homes in your city. However, this process can be fraught with potential complications, and it's important to do your research first. Read on to learn more about the local market for investors who purchase, renovate, and quickly resell homes, as well as what you'll want to consider when deciding whether to enlist the help of an attorney with this transaction.
Is the Kansas City housing market still hospitable to home flippers?
Those who fix and flip houses for a living have had a profitable run since the Great Recession, as high foreclosure rates depressed surrounding property values and made it relatively simple for investors to find quality homes that could be purchased for less than the price of a new car or truck. However, those who are relatively new to this process or who haven't had much flipping experience since the subprime housing crash may wonder whether they've missed the boat when it comes to obtaining homes with "good bones" at low prices.
Fortunately, even with the ongoing improvement in the national housing market, the Kansas City market still has some gems to offer potential investors. While it's become much harder to find ultra-cheap homes that require just a few cosmetic repairs before resale, those who are willing to do their homework and ensure financing is in place before putting in an offer can still snag a great investment without being limited to paying cash or refinancing a primary home.
Kansas City offers a median home price of just over $115,000, and median rental rates of $950 to $1000 per month -- with both housing prices and rents rising from year to year, this market can be lucrative both for those who enjoy buying and flipping and those who would rather rent out a renovated home for a few years before resale.
Should you hire an attorney to help you with this sale?
Although many residential home buyers will utilize a real estate attorney to help with various parts of the transaction, including closing, purchasing fix and flip homes can be different -- from the need for hard money financing or a renovation loan post-sale to pending code enforcement violations and other local considerations. Because of the increased number of factors at play here, having an attorney on your side can be helpful.
And because many of the homes that are best suited for a fix and flip are bank-owned (having been sold at sheriff's sale following mortgage or tax foreclosure), which brings its own challenges, having an attorney with you to navigate the transaction can be key.
For more information concerning flipping real estate, contact businesses like Blake Law Office.Share