Current Buy Formula In Kansas City, MO | April 2021

[Morgan McRae]

I'm talking to potential sellers in some select zip codes close to Downtown Kansas City, MO. I've targeted areas of town where I'm seeing a lot of flipping activity. Of course, there is the classic MAO formula for wholesale. [ARV X .7 - Repairs - Wholesale Fee = MAO] However, for a lot of these houses between 100K - 200K range, I would think flippers would be willing to operate at a slightly tighter margin, since the market is so hot, and they're able to offload successfully flipped houses quickly.

Obviously, this is subjective, but does anyone want to chime in on where they think the Kansas City, MO market is sitting regarding flipping, and how much margin they're looking to make from a flip when it's so competitive? I feel like I could get more deals to more flipping outfits if I weren't having to lowball so much to my potential seller lists. I'm excited to hear your answers. Much appreciated.