If you’re a senior looking to earn some extra income, buying and selling homes can be an attractive way to make it happen. Whether you want to do a single flip to put some money in your pocket or start your own business, there are many ways you can get into the house-flipping industry. To learn more about this unique side hustle, check out this beginner’s guide to flipping houses for seniors, shared by guest author Teresa Greenhill of Mental Health for Seniors.
Real Estate Market Research
When it comes to real estate, one of your most important tasks is to conduct extensive market research before deciding which home you want to buy. The better educated you are on your local real estate market, the better off you’ll be as a new home flipper. Real estate sites such as Zillow or Redfin can give you insight into supply and demand in your area.
Decide on a Budget
Many people prefer to buy fixer-uppers to save money on a house purchase, only to find themselves saddled with astronomical repair and restoration expenditures. It’s wise to add 20% to your estimate when pricing a property. This is especially true for major repairs such as electrical work, HVAC upgrades, foundation issues, or asbestos or mold issues.
Finding Your Ideal Property
Houses can take a while to sell, and they usually don’t make much money, so you might want to look for an older home that needs a lot of work. If it’s a big project, you can spread renovation costs over time as you flip your property. Besides, people don’t want to buy a property that looks like it needs too much work. If yours is already in tip-top shape, your property will be more attractive to buyers.
Finding the Right Mortgage Lender
Finding a lender can be difficult, but you should work with a professional experienced in working with home buyers and retirees. You’ll want someone who understands your unique situation and circumstances and will make getting a mortgage loan easy. After all, financing is perhaps one of the most critical elements of success when investing in real estate; if you don’t have it, you can’t buy property.
Renovations to Boost Value
Boosting the value of your property with renovations makes your property more attractive to buyers. One way to do that is by adding an attic or basement conversion, which can add hundreds of thousands of dollars in value. If you have a two-story house with a finished basement and no attic space, adding an attic conversion can give you more living space.
Business Structure
Forming a limited liability company (LLC) allows you a few legal protections, such as personal protection from potential lawsuits against your business, that can save you from paying out-of-pocket if something happens. It also offers a degree of formalization and stability, and an online formation service can help you set up your LLC in Florida in minutes.
Finding Success
To be successful in flipping houses, it helps to have prior knowledge of construction and house repair. It’s also vital that you have time, patience, and willingness to research your property before purchasing. From establishing your own LLC to familiarizing yourself with the market, follow the steps above to get started!
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