Written by: Katie Conroy
It’s a common situation: you’re in retirement but would like to have something to keep you busy and bring money in. For many, house flipping is the perfect retirement business as it offers flexible hours and the potential to be very lucrative. Use this guide from CHConstruction to get your house flipping business started today.
Know What Makes a Property Worth Flipping
Location is key when looking for potential houses. Skip over the best neighborhood your area has to offer; it makes more financial sense to focus on those neighborhoods that are growing but haven’t yet exploded. This can save you money both when you purchase the house and when you must pay property taxes on it.When narrowing down homes, it can help to know what repairs are too costly to take on so you can avoid houses in need of expensive renovations. The Zebra lists foundation problems, roof replacement, and hot water heater issues as among the costliest that a homeowner can be forced to deal with, so save yourself the trouble and avoid homes that need investments such as these that can be more trouble than they’re worth.
Research Renovations With Big Returns
All renovations are not created equal. When house flipping, it is especially important to be shrewd with your finances, so investing in cheap upgrades that get you more bang for your buck is essential. Fresh paint is the quarterback of inexpensive home improvements that have a huge impact, but other players such as updating cabinet hardware and landscaping can also be quite effective with little upfront investment. In the kitchen, swapping out appliances for stainless steel models and installing a range hood can give your space extra panache. If you need help with tasks that aren’t in your wheelhouse, like handyman help or restoration services, connect with CHConstruction to ensure your investment is fully functional.
Get the Right Funding
When it comes to funding there are many options for home flippers. Traditional mortgages are available but don’t necessarily make the best business sense when you will only own the home for a short period of time.Hard money loans are designed for those interested in fixing up houses in poor repair. Their length of terms is brief but their interest rates can be high. One benefit of them, though, is that your loan amount is based on the projected market value of the home after you’ve finished your renovations so you may have more money to work with upfront. You can also opt for private funding with some people using crowdfunding campaigns and others relying on traditional investors.
Know What Your Price Is
Research thoroughly what homes in the area you are purchasing are selling for. With a little digging, you can easily find recently sold homes online to get a feel for what you should be asking. Of course, no one knows your local market better than the real estate experts from the Battle Real Estate Team who are buying and selling within it every day, so consulting with them can help you get an even more exact estimate.
Understanding your budget is critical for profitable flipping. If you hire others, you need to have software for payroll in order to effectively and efficiently track time and run payroll. There are many payroll software options, so look for one that is affordable and loaded with extra features like automation, direct deposit and tax form management.
House flipping is a viable and potentially profitable option for seniors looking to earn money on their terms and stay active. With the right help and smart planning, you can be bringing in the big bucks with your house-flipping business in no time.
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