With affordable houses and a reasonably strong economy, Missouri is an interesting hunting ground for property flippers.
Overall, the “Show Me” State can be a good place to start your house flipping journey. The low cost of houses effectively lowers the barrier to entry. However, you will need all your project management skills to maximize profit in Missouri. The average revenue per flip is lower than the US average. This gives you less budget for renovations, and it means you have to be extra strict with your planning and budgeting.
Now let’s take a more detailed look at how to flip houses in Missouri.
Missouri House Flipping Stats
Median Purchase Price
$130,520
Median Resale Price
$188,450
Average Revenue
$57,930
Price Per Square Foot
$120
Missouri Population Size
6,137,428
Median Household Income
$53,560
High School Graduation
89.6%
Travel Time To Work
23.6 Mins
Best Cities for Flipping Houses In Missouri
- Kansas City
- St. Louis
- Springfield
- Columbia
- Independence
Safest Areas In Missouri
- Ballwin – Safety Score: 89.92
- O’Fallon – Safety Score: 87.1
- Wentzville – Safety Score: 86.31
- Chesterfield – Safety Score: 84.35
- Kirkwood – Safety Score: 84.18
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
The Basics Of Flipping Houses In Missouri
- Find a property in Missouri that is undervalued
- Source funding from a reputable hard money lender in Missouri
- Buy the property for a price that makes it possible to generate profit when it is resold
- Complete renovations that will increase the after repair value
- Find buyers for the property and sell it for a healthy profit margin
How To Find Houses To Flip In Missouri
1. Use FlipScout By New Silver
FlipScout is a free tool that helps you find most profitable real estate investments using data and intelligence. Find a property to flip or rent out anywhere in the country.
- Free to use
- Works for flips and rentals
- Get alerts to your inbox
- Calculates rehab costs automatically
- See ROI and rental income instantly
- Aggregate results from various sources
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Missouri.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in Missouri, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
Missouri Housing Market Analysis
House Flippers Are Choosing Good Areas: The median resale value for house flips in Missouri ($188,450) is very similar to the median home value in Missouri ($178,566). This indicates that investors are concentrating their efforts on good areas where they can dramatically improve the after repair value of the property with well-executed renovations.
The Revenue Per Flip Is Lower Than The US Average: The average revenue per flip in the US is over $65,000. In Missouri, this drops down to $57,930. Based on this, you will need to be extra vigilant with your budget, and do your best to meet the project deadlines. If you do creep over your budget or take longer than planned, it could threaten the profitability of your flip.
Home Values Appreciated By 8.5%: Over the past 12 months, home values in Missouri have increased by 8.5%. Moreover, house prices in Missouri have been steadily increasing since late 2012.
While the real estate market did take a dip when covid-19 first arrived in America, house prices have bounced back nicely due to some of the economic reforms that were put in place to help curb the destruction brought about by the pandemic.
Of these reforms, the chief driver is historically low interest rates, which has made property in Missouri more affordable than it has been in years. This has lead to an increase in demand, without a corresponding increase in supply, which is literally the perfect recipe for property appreciation. Provided interest rates remain low, it is fair to assume that property prices will continue to appreciate for some time to come.
Homes In Missouri Are Much More Affordable Than The National Average: The average home value in Missouri is $165,650. This is considerably less than the average home value in the United States, which is approximately $248,857.
The relatively low cost of homes in Missouri makes the market more accessible. You need less capital to get started, a condition which lends itself to first time flippers hoping to break into the property investing business.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.
Next Steps
If you’re ready to start flipping houses in Missouri, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit.
Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.
Property Flipping Resources
Hard Money Loan Calculator: Analyze the costs of your next flip in detail with our hard money calculator.
ARV Calculator: Workout the After Repair Value of the property that you are hoping to flip.