If you’re a senior who’s recently retired or preparing to retire, you may be interested in ways to boost your income after you stop working. Flipping houses can be a great way to make some extra money while also giving you an engaging project to keep you busy. Since real estate transactions of any kind involve a significant investment, you want to plan carefully to reduce the risk of monetary losses when undertaking this kind of project. Read on for some tips for house flipping done right.
Find the perfect property
When selecting a property, think strategically. You want to ensure that you can sell the fixer-upper once it’s ready, so you have to consider your future buyers. Location is a major factor. For example, if you’re planning to flip a large family home, being in a good school district is a big plus. According to Rehab Financial, other considerations include price and the property’s physical characteristics, including the repairs needed. For instance, kitchen remodeling is simpler than fixing a foundation.
Prepare a budget
When shopping around for real estate, keep the 70% rule in mind, which dictates that you should aim to buy a property at 70% of its estimated after-repair value, minus the renovation costs. To determine the maximum limit that you should spend, you’ll have to figure out exactly how much you’ll need to invest in the house to flip it and make it habitable. A general contractor can provide an estimate on essential repairs to get you started.
Get ready for the mortgage process
You probably don’t want to spend all your retirement savings on a real estate venture, which means you’ll likely have to take out a home loan to buy the property you’re going to flip. Prepare the documents you’ll need to get a mortgage, such as income tax returns, bank statements, and any proof of income. Getting preapproved for a mortgage can expedite the process. Further, consider making a down payment of at least 20% to avoid the expense of private mortgage insurance.
Make essential fixes and value-boosting upgrades
Once you’ve got your property, it’s time to start flipping. Begin with the essential repairs and renovations that impact the house’s livability, addressing issues such as a leaky roof and broken windows. A general contractor can help with these large-scale projects. Then, move on to value-boosting upgrades, like adding energy-efficient appliances and fresh paint. For example, you might install a range hood to vent smoke, grease, and odor from the kitchen, improving indoor air quality.
Boost the property’s visual appeal
With the big repairs done, it’s time to move on to the aesthetic touches that will make a house more marketable. Sprucing up flooring and walls is a great starting point. Wallpaper can give any space a timeless and elegant look. Try peel-and-stick options for wallpaper that’s both easy to use and customizable. It’s simple to apply and adjust, plus you can create custom designs and have them printed on demand—so you don’t have to worry about your chosen design being out of stock.
Know how to market the space when it’s ready
Once you’re done making the home ready for buyers, it’s time to sell it. Put some effort into staging the property, making it as appealing as possible to potential buyers. For example, adding some flower pots out front can enhance curb appeal, the first impression the property gives visitors. Then, it’s time to start marketing. Houzeo offers tips for reaching buyers, like listing the house on FSBO (for sale by owner) websites, using yard signs, and leveraging social media.
Flipping houses can be a fun and lucrative way for seniors to keep busy in retirement. However, real estate investments also come with financial risks, so it’s important to do your research and plan carefully. The above guide can help.
For more content like this, visit Smart Strategies for Successful Living. You’ll find tips and resources to help seniors make the most of their golden years.
Written by: Annabelle Harris
Annabelle Harris is the creator of Elders.Center. Her goal is to help soon-to-be-seniors and already-seniors move gracefully into their golden years with less fear and more confidence.