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Guest Author: Andrea Needham
If you’re a senior who’s preparing to retire or recently retired, you may be looking for ways to keep busy. Flipping houses can be a wonderful means of passing the time—and making some extra money to help supplement your post-retirement income. If you’ve never flipped real estate before, you want to proceed with caution and do your research to avoid missteps and protect your financial investment. This guide provides the basic information you need to get started.
Know what to look for when buying property to flip
When selecting a house to flip, you have different considerations than if you were purchasing a property for your personal use. While thinking of your target audience—for example, singles versus families— there are certain factors to take into account, such as location and the property’s physical characteristics. For example, for a family, school districts matter. Also, assess the cost of renovations. Fixes like repairing a roof can cost big bucks and cut your profits if you aren’t careful.
Figure out your financial needs and prepare your paperwork
Since you’re already retired, you want to be cautious with how you spend your money. It’s not advisable to blow all your retirement savings on a down payment. Instead, get a home loan. To prepare, determine how large of a down payment you can reasonably make and how big of a mortgage you’ll need. Then, get the relevant paperwork to apply for a loan. According to Experian, this includes pay stubs, W-2 forms, 1099s, credit card and bank statements, and more.
Identify necessary renovations and make essential fixes
When you’re buying a house to flip it, you won’t get it in peak condition. Before you start thinking about putting the property back on the market, take the time to make the necessary renovations. This will ensure you can command a higher price later and boost your profit. When figuring out which home improvement projects to prioritize, start by addressing functionality. Issues like mold or water damage, which make a house potentially unliveable, should be given priority. A contractor can help.
Look for ways to improve the property’s overall value
Once you’ve taken care of the bare minimum remodeling and repairs, you can start thinking about ways to increase the real estate value. Seattle Credit Union has ideas like adding new appliances and creating more usable outdoor space, for example by adding a deck. You can also look at ways to boost curb appeal in general, for instance by adding landscaping to the front yard. Finally, consider upgrading the rooms that are most used in the house, like the kitchen and bathroom.
Stage the property to prepare it for a sale
Staging refers to the process of preparing a house for visits from potential buyers. Proper staging can help make a property more appealing and command a higher sale price. To start, give the place a deep clean from top to bottom. This is especially important after renovation and repair works have created dust and dirt. Next, declutter the space and add aesthetically appealing natural touches, like vases of flowers. Finally, make sure that it smells great, for example with air fresheners.
Know how to market your property
Staging is just the first step in marketing your property. Once that’s done, you have to figure out how to get the word out about your place. Social media is one option. You can create your own YouTube videos providing a 3D walk-through of the property. This YouTube banner template can be customized with your own logo, images, and text. If marketing isn’t your thing, trust realtor Kathy S. Koops to do it.
For seniors who want to keep busy and boost their income, flipping houses is a great option. If you’re new to flipping, trust professionals, like contractors and realtors, to help. The above tips can guide you through the process from start to finish.
For more real estate-related content like this, check out the blog.
About the Author: Andrea created Elders Day to remind everyone that getting older isn’t synonymous with slowing down. Everyone has their own pace, but age shouldn’t be what stops you from fulfilling dreams, goals, and desires.
Here’s where you can find my website: eldersday.org.