How To Flip Houses In Kansas: Step By Step (2024)

In recent years, Kansas has emerged as one of the hottest real estate markets in the country. With its steady economic growth, affordable housing options, and a surge in job opportunities, the Sunflower State has become a prime destination for real estate investors seeking lucrative and abundant opportunities.

Flipping houses in Kansas offers unique advantages, making it an enticing prospect for investors of every experience level. The state's real estate market is highlighted by relatively low property prices and high demand for affordable housing, creating ample opportunities to find deals and turn them into profitable investments.

Whether you're an experienced investor looking to diversify your portfolio or a novice seeking to embark on a rewarding real estate journey, learning how to flip houses in Kansas can open up a world of possibilities. As a result, we’ve developed this guide to teach you everything you need to know about flipping real estate in the Kansas housing market, including:

• What Is Flipping Houses?
• Kansas House Flipping Statistics
• How To Flip Houses In Kansas (7 Steps)
• How To Find Houses To Flip In Kansas
• Do You Need A License To Flip Houses In Kansas?
• How To Flip A House In Kansas With No Money
• Best Cities To Flip Houses In Kansas
• Final Thoughts On Flipping Homes In Kansas

*Before we begin our guide, we also invite you to view our video on How To FLIP A HOUSE For Beginners (Step-by-Step). Host and CEO of Real Estate Skills, Alex Martinez, & Stan Gendlin share how to flip a house in Kansas as a beginner! 

Together, Alex & Stan have completed over 1,000+ house flips. What you learn in this video will give you the confidence and guidance to successfully complete your fix-and-flip project!

What Is Flipping Houses?

House flipping, an exciting and profitable real estate investment strategy, revolves around three core principles: buying, rehabbing, and selling. Like in other states, flipping houses in Kansas gives investors an excellent opportunity to purchase undervalued properties, renovate them, and resell them at a higher price.

The key to successful house flipping in Kansas is identifying motivated sellers willing to part ways with their properties at a favorable price. Investors set the foundation for higher profit margins upon resale by targeting distressed homes or properties needing renovation.

In the competitive Kansas real estate market, strategic planning and execution of renovations are vital. Investors must invest in upgrades that enhance the property's appeal to potential buyers while staying within budget limits. The goal is to create a property that outshines comparable homes, maximizing the potential for attractive returns.

Once the property is renovated, investors can put it back on the market to be sold at a higher purchase price than the initial investment. Perhaps even more importantly, investors don’t need to use any of their money. Financing these projects is often done through private and hard money loans (similar to bridge loans), which provide quick access to the necessary funds for fast-paced deals. These flip loans come at a high cost, often in points and high-interest rates, but they are worth the added expense.

Read Also: Finding Motivated Seller Leads: Free & Paid Tactics

Kansas House-Flipping Statistics

Discover Kansas's key house-flipping statistics that every real estate investor should know. Below is a list of the most critical data and trends investors can use to learn how to flip property in Kansas:

• Average Home Prices: $215,642
• Median Sale Price: $281,800
• 1-Year Appreciation Rate: +9.2%
• Median Days To Pending Sale: 5
• Median Days On Market: 15
• Homes For Sale: 8,330
• New Listings: 3,733
• Foreclosure Rate: One in every 8,714 households
• Population: 2,937,150
• Median Household Income: $64,521
• Unemployment Rate: 8%

*All Kansas housing market statistics are as of Q3 2023.

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How To Flip Houses In Kansas (7 Steps)

If you're ready to learn how to flip houses in Kansas, follow these seven essential steps. From finding the right property to maximizing your profits, this comprehensive guide will walk you through each stage of the house-flipping process in Kansas:

1. Find A House-Flipping Mentor
2. Research The Local Housing Market
3. Find & Analyze Distressed Properties
4. Raise Capital To Fund The Deal
5. Close On The House
6. Renovate The Property
7. Resell The House

1. Find A House-Flipping Mentor

Finding a house-flipping mentor is crucial for new real estate investors in Kansas. While books and research are valuable, learning from an experienced flipper can expedite the process and reduce risks quicker than reading anything. If for nothing else, a mentor offers invaluable insights into identifying suitable properties, understanding market trends, and implementing renovation strategies specific to Kansas's real estate landscape.

Investors who work with a mentor can gain confidence to take that first step and develop a solid business plan. Additionally, mentors provide a supportive network, connecting investors with essential industry connections and offering a unique perspective on the ever-evolving market. Whether it's personalized coaching, mastermind groups, or apprenticeships, finding the right mentor can significantly enhance your chances of success in the competitive Kansas house-flipping market.

Get started on your journey to house flipping in Kansas by seeking guidance from experienced mentors. Contact Real Estate Skills to discover the support and knowledge you need to make the most of your impending career.

Ready to start house-flipping in Kansas? Join Alex Martinez at his FREE training to learn how to get started with house-flipping and wholesaling!

2. Research The Local Housing Market

As you venture into the world of house flipping in Kansas, leveraging the right resources can significantly impact your success. Below, we've compiled a comprehensive list of invaluable resources to aid you in your journey as a real estate investor in the Kansas housing market:

• Zillow Housing Data Research
• Zillow’s Kansas Market Overview
• Redfin’s Kansas Housing Market Overview
• Realtor.com’s Kansas Market Overview
• Realtor.com’s Residential Data Library
• Kansas Association Of Realtors
• ATTOM Data Solutions’ Kansas Real Estate & Property Data
• SoFi’s State Foreclosure Data
• U.S. Census Bureau’s Kansas Data
• Bureau Of Labor Statistics’ Kansas Economic Data
• Kansas Real Estate Commission
• Federal Reserve Bank of St. Louis’ Kansas Data

3. Find & Analyze Distressed Properties

When learning how to flip houses in Kansas, finding and analyzing distressed properties is crucial for new investors. One effective method to initiate this process is by employing the 70% rule, which prevents overpaying for potential deals and ensures room for profitable margins.

First, determine the property's after-repair value (ARV) by thoroughly researching recent sales data of comparable properties or using reliable ARV calculators. Then, apply the 70% rule by multiplying the ARV by 70% and subtracting estimated rehab costs. The resulting answer is the maximum allowable offer (MAO). As its name implies, the MAO suggests the most investor can spend to acquire a home without detracting too much from profit margins on the backend.

Here is the formula:

ARV - Fixed Cost - Rehab Costs - Desired Profit = Maximum Allowable Offer (MAO)

Remember that while the 70% rule provides a quick snapshot, it should complement more comprehensive research to confidently identify excellent investment opportunities in the Kansas real estate market.

Read Also: Free ARV Calculator: After Repair Value Calculation

4. Raise Capital To Fund The Deal

After identifying a promising property for your house-flipping venture in Kansas, the next crucial step is to secure the necessary capital to fund the deal. While some investors may tap into their cash reserves, exploring external financing options can offer significant advantages, especially for those aiming to scale their house-flipping businesses without depleting their savings.

Private and hard money loans are the preferred funding sources for home flippers In Kansas. Despite the higher interest rates associated with these loans, they provide crucial benefits for investors. Private money lenders typically offer quicker preapproval and funding timelines, making them more attainable for those with credit scores that traditional banks would turn away.

These loans align perfectly with the short-term nature of house-flipping projects, preventing investors from incurring years of amortized payments. Additionally, the flexibility and faster approval process of private and hard money loans streamline the funding process, allowing investors to act swiftly in Kansas' competitive real estate market.

By leveraging these funding sources, new investors can ensure that their flip projects are adequately financed and increase their chances of achieving attractive profit margins in the Kansas housing market.

5. Close On The House

Closing is a crucial step in the house-flipping process, signifying the transition from buyer to owner. To smoothly and efficiently close on the house and secure the investment, investors should follow these essential steps:

• Negotiate & Execute A Purchase Agreement: Begin by negotiating and finalizing the purchase and sale agreement, specifying vital details such as the purchase price, contingencies, closing date, and milestones.
• Escrow & Title Search: Under Kansas' escrow system, a neutral third party holds funds and documents until all prerequisites are met. During this period, conduct a comprehensive title search to ensure a clear transfer of ownership.
• Due Diligence & Property Inspection: Before closing, perform a thorough property inspection to assess its condition and identify potential issues—complete due diligence, including appraisals and addressing contingencies.
• Review & Sign Documents: Everyone involved in the deal will review and sign the papers deemed necessary by the escrow representative.
• Fund Disbursement & Ownership Transfer: When the escrow is funded and all the prerequisites are met, the transfer of ownership may occur.
• Title Recording: The new owner is officially on record as the home's rightful owner in the county Recorder’s Office.

By following these steps and navigating the closing process successfully, house flippers in Kansas can confidently proceed to the renovation stage, focusing on enhancing the property's value and maximizing their profits in the Kansas real estate market.

6. Renovate The Property

Anyone who wants a better understanding of how to flip houses in Kansas needs to know how to renovate a home. House flippers must concentrate on cost-effective improvements that enhance the property's curb appeal and stir up interest. Strategically selecting renovations with a high ROI ensures investors extract the most value from their investment. Enhancing curb appeal and fabricating demand through renovations can attract potential buyers and significantly boost the property's marketability.

According to Remodeling Magazine, the renovations that return the most money to investors in Kansas (and the rest of the West/North/Central region of the United States) are:

• Electric HVAC Conversion: Recoups 114.5% of the original cost
• Vinyl Siding Replacement: Recoups 92.9% of the original cost
• Manufactured Stone Veneer: Recoups 96.7% of the original cost
• Minor Midrange Kitchen Remodel: Recoups 96.7% of the original cost
• Garage Door Replacement: Recoups 99.7% of the original cost

7. Resell The House

To ensure a successful and prompt resale of the house in Kansas, follow these crucial steps:

• Strategic Marketing: Effectively promote the property through various listing platforms and engaging open houses. Consider seeking the assistance of a skilled real estate agent or Realtor to gain a competitive edge.
• Timely Sale: Aim to sell the property quickly to avoid accruing mounting holding costs, such as property taxes and utility bills. A swift sale enables investors to realize profits sooner and embark on their next lucrative venture.
• Accurate Pricing: Set the selling price accurately by thoroughly evaluating recent comparable sales and analyzing local market trends. Avoid overpricing to prevent extended market time, and refrain from underpricing to ensure you don't leave money on the table.
• Showcase Renovations: Highlight the strategic renovations made during the flip to justify the asking price to potential buyers. Emphasize the property's enhanced features, such as modernized kitchens, bathrooms, and energy-efficient enhancements, creating strong selling points.
• Effective Negotiation: Rely on the expertise of a skilled real estate agent to navigate the negotiation process and secure the best possible offer from potential buyers.
• Streamlined Closing: Prepare the paperwork for closing and collaborate closely with the real estate agent, title company, and other parties to expedite the closing process. A smooth closing ensures the transaction is completed efficiently, allowing you to realize profits and move forward with new ventures promptly.

How To Find Houses To Flip In Kansas

Discovering profitable opportunities to flip houses in Kansas is as simple as using these strategies:

• Network and collaborate with local Realtors and real estate agents. With the most knowledge of a specific market, these real estate professionals most likely either know of deals or know someone who knows of a potential deal.
• Gain access to the Multiple Listing Service (MLS). Whether by becoming an agent or partnering with someone with access to it, the MLS is the largest homeowner database that has already expressed interest in selling. MLS listings represent valid opportunities for investors who know how to navigate them.
• Seek and attend local foreclosure auctions. Investors who can navigate the auction process may gain access to the homes banks no longer want to hold in inventory.
• Use a direct mail campaign to target potential sellers in a given area. Physical mail can collect the information of homeowners inclined to sell for various reasons.
• Investors can “drive for dollars” to identify potential deals. More specifically, investors can watch for neglected properties in the areas they hope to invest. In doing so, they may be able to find homeowners who are more inclined to sell.
• Investors looking for deals should network with wholesalers. Maintaining relationships with wholesalers can reveal a constant supply of deals.

Do You Need A License To Flip Houses In Kansas?

Flipping properties as a real estate investor does not require holding a license in Kansas. There is no legal requirement for a real estate license to buy, rehab, and resell real estate. However, many investors still opt to obtain a license due to the added benefits it can bring to their business.

By acquiring a real estate license, investors can access valuable resources, such as the MLS. This access opens up a world of opportunities by providing comprehensive information on properties for sale, enabling investors to spot potential deals more efficiently.

Read Also: How To Get MLS Access: The (Ultimate) Guide

How To Flip A House In Kansas With No Money?

Flipping houses in Kansas allows investors to forgo using their funds entirely by tapping into financial resources provided by private and hard money lenders. This approach frees investors from the constraints of traditional banks, credit checks, and lengthy approval processes, democratizing home flipping in Kansas.

With the support of hard and private money loans, investors gain immediate access to capital, expediting the entire house-flipping process. This swift access empowers them to seize promising opportunities and efficiently take advantage of potentially profitable deals.

Furthermore, aside from traditional house flipping, investors can also explore wholesaling properties in Kansas. Wholesaling involves securing property rights and then selling them to end buyers for a fee. This approach demands minimal capital investment, making it an appealing option for budget-conscious investors looking to maximize their returns.

Best Cities To Flip Houses In Kansas

The best cities to learn how to flip houses in Kansas include, but are not limited to:

• Kansas City: On the border of Kansas and Missouri, Kansas City offers the unique combination of affordability and demand investors covet.
• Wichita: Investment properties in Wichita offer investors the same combination of affordability and demand as in Kansas City. In particular, Wichita is a great place to invest for the first time, as flippers shouldn’t have difficulty finding buyers for their deals.
• Olathe: With a median home value of $389,604, the real estate market attracts higher-end home buyers. The average home value in Olate is well above the state average, but investors should enjoy the profit margins that coincide with the higher prices.
• Overland Park: Another location with home values well above the state average, Overland Park is a great place to learn how to flip a property. While the market value of homes will cost more upfront, investors who can secure loans will find attractive margins waiting on the other side.

Final Thoughts On Flipping Homes In Kansas

Learning how to flip houses in Kansas offers an exciting opportunity for real estate investors to capitalize on the state's thriving market. By following the essential steps outlined in this guide, new investors can confidently navigate the process, from finding profitable properties to executing successful flips. With the right systems in place and a great mentor to keep you on track, Flipping houses in Kansas can be a great career move.

Are you eager to learn how to flip houses in Kansas? Don't navigate the complexities of the real estate market alone. Reach out to Real Estate Skills today for expert guidance and support. Our experienced team will provide the knowledge and tools you need to flip houses successfully in Kansas. Contact us now to embark on your flipping journey with confidence and purpose.