Retired? Flipping Houses Can Offer You a New Challenge
Retirement can be an excellent time to start another venture. One way to earn money, work with your hands, and show your creative side is flipping houses.
Setting Up Shop
You may be able to make many improvements on your own, but bringing in professionals to help you can save time (and probably some aggravation). Hiring people is especially practical if you plan to keep any of your properties as rentals. Even if you have a small staff, payroll services will help you pay your workers on time. Shop for a platform that features:
- Automatic payroll scheduling
- Same-day direct deposit
- Automatic calculating
- Tax filing
The key to earning a profit by flipping houses is simple: Buy properties at a cost that allows you to make money renovating and selling them.
It’s easy to overspend. You can go over budget on renovations, but you can also pay too much for a house. Experts recommend the 70% rule: Don’t pay more than 70% of the improved home value.
A real estate agent can help you find properties. Red Door Realty Group knows the Jacksonville market and can give you inside information on what buyers are paying in the neighborhood.
It’s wise to buy houses in desirable or up-and-coming neighborhoods. Avoid areas that already have lots of places for sale; you don’t want too much competition.
Getting a Mortgage
It can be tricky to get a mortgage for a home you plan to flip. Lenders view house-flipping as a risky venture. They may hesitate to lend you money or charge you higher interest rates if you’re new to the business. Lenders know you have expenses ahead of you:
Consider talking to experienced flippers. Who do they work with to borrow money? They may recommend a private investor or company that’s friendly to house flippers.
Improvements That Attract Buyers
If the cabinets are in good shape, consider repainting or refinishing them for a clean, updated look. Countertops that are worn or dated may need replacing or refinishing. New lighting fixtures can make a room look fresher, and they don’t have to be pricey.
Think about replacing appliances that are more than several years old with new, energy-efficient models. A range hood is an excellent way to update the stove and vent smoke, grease, and odors from the kitchen to keep the house’s air cleaner.
The other room that sells houses is the master bathroom. Are the sink and toilet in good shape? You may be able to upgrade the faucets and lighting to brighten the bath. Perform a deep cleaning on the bathroom if you aren’t remodeling it entirely.
Sellimg the House
Generally speaking, the faster you sell your house, the more money you make. Homes that linger on the market sell for less. Your real estate agent can assist you with the selling process. Agents know market fluctuations and can help you set the right price.
If you enjoy home improvements and want to spend retirement taking on a challenging and creative project, flipping houses can be a great second career.