Flipping houses is one of the best pursuits you can explore in retirement. Just because you’ve retired doesn’t mean you need to stop working. In fact, people who work after retirement remain more active and socially connected. This will keep you in good health.
While you don’t need to get out there and fix up the house yourself, you can still benefit from the interaction and planning involved in buying, fixing up, and selling a house. If you get good at it, flipping houses could also give you more financial stability. Overall, it’s a rewarding hobby that will make your life better in many ways, but there are a few things you need to know first.
Here are some tips for taking on house flipping.
Look for a home with good bones.
If you truly want to make a profit from flipping homes, you should find a house that doesn’t require a lot of money to fix. While purchasing an as-is home has its advantages, avoid homes that need complete renovations. Look for a house that is structurally sound. Fixing the foundation of a home can cost thousands of dollars. You should also avoid homes with large electrical or plumbing issues as these issues might also end up breaking the bank. Instead, search for a home with mostly cosmetic problems, something that a new layer of paint could fix.
Bigger Pockets notes that a home with very little curb appeal could be just what you need. For example, a bright orange house with cracking paint in a good neighbourhood with nearby restaurants and schools would be perfect. Before buying, you should consult a real estate professional to see which neighbourhood is best to buy in. Your agent will also be able to tell you which homes are the best candidates for flipping.
Know your financing options.
Before you start fixing up the house, you should know how to finance the endeavour. There are several options available, so you’ll have to determine which one works best for you. One of the most popular ways to finance a home flip is through a hard-money loan. A hard-money loan is a short-term loan that requires a down payment. According to Realtor, you can even get this loan with a credit score as low as 550. You should also consider a cash-out refinance, home equity loan, investment line of credit, and crowdfunding.
Get the home ready to flip.
This is where the elbow grease comes in. While you can definitely take on some of the projects yourself, you should also hire professionals who can help you with the process. If you’ve chosen a good home to flip, it will probably only need cosmetic repairs and a few updates. In fact, hiring a cleaning service to do a deep cleaning can help improve its value.
Bob Vila notes that you should paint everything, install new carpet, change the light fixtures, and spruce up the curb appeal. Updating the kitchen and bathrooms will also help. Don’t do any unnecessary structural renovations. Instead, purchase new appliances and countertops. You might even have a new tiling job done.
To draw even more homebuyers and raise the value of your home, you should consider installing a smart home security system. Families will be happy to know that they won’t have to worry about safety if they buy your home. Because of this, they will be willing to pay more, and they will likely prioritize your home over a home without a security system installed.
Pay your workers.
Paying your contractors or employees is one of the most important aspects of flipping houses. You need to make sure you do it on time, so they know their hard work is appreciated. The easiest way to pay contractors is through payroll software. This way, you never forget. Payroll software will also make it easier to do your taxes and view everything in one place.
Flipping homes can be incredibly rewarding, even if you’re in your golden years. Just make sure you do the research and planning required. Soon, you’ll have successfully flipped your first house!
James Hall is a retired nursing home administrator. Following his retirement, he wanted to find a way to continue helping seniors and to make the most of his own golden years. He created Senior Care Fitness where he regularly shares his knowledge and resources to help seniors not only overcome the downsides of aging, such as chronic pain and other health issues but to thrive throughout this “golden” time.