After retirement, some seniors spend their free time gardening or traveling. Others merely take it as an opportunity to relax. However, if you’re looking for an opportunity to profit, you should consider flipping houses. Some individuals make $60,000 or more per flip. When you understand these simple tips from County Properties, you’ll be more likely to profit.
Fortunately, if you’re a senior with established credit, you can qualify for a low-interest mortgage. You won’t be eligible for an FHA loan or VA loan since it won’t be your primary residence, but you could try for a home equity financing program.
You could also look into senior home buying programs. Make sure you read the fine print, though, because you won’t qualify for some programs if the property isn’t your primary residence.
Buying a Fixer-Upper
You might assume that you’ll make the most profit when you buy a fixer-upper, make the necessary repairs and upgrades, and sell the home for much more than you paid. However, this doesn’t always work out in the seller’s favor. Proceed with caution and know what to look for in a home if you plan to flip this way.
For instance, location is key when you’re buying a fixer-upper. Evaluate the proximity of the potential property to the road, as most people don’t want to live too close to the street. Consider how close the property is to amenities, such as schools, shopping, and services. By picking the ideal location, the house will be more likely to sell and at a higher rate. In some cases, you may even enjoy property tax savings.
As you assess the house, evaluate what type of work the house requires to make it salable. If you can do it yourself, you’ll only pay for materials. However, if you’re still working, aren’t handy, or realize the challenges of DIY projects as a senior, you should factor in the cost of hiring someone for the repairs.
When you get estimates, it’s better to overestimate than to underestimate, especially with large repairs. For instance, rewiring a home could cost anywhere from $1,500 to $20,000, depending on the size of the house. Once you get an estimate, you should tack 20% onto it to guarantee you’ll have enough for the project in case something unexpected arises.
Keep in mind that the upgrades you’ll see the most return on are usually garage doors, kitchen and bathroom remodels, and siding and window replacement.
Consider Formalizing Your Business
Whether you’re a retired senior or still working, simplifying the flipping process in any way is beneficial. That’s why you should consider creating an LLC. An LLC is a limited liability company, and by forming one, you can make tax time less of a burden. Additionally, you’ll have less hassle in general and can protect your personal assets if legal action is ever taken against you. Fortunately, creating an LLC is simple and affordable. Online formation services can help you form an LLC quickly and inexpensively in California.
Senior Home Flipping Done Right
When you understand certain aspects of senior flipping, you’ll reap the most reward in the end. Be careful to select properties in good neighborhoods and be prepared for unexpected repairs with a contingency fund to ensure your flip goes as smoothly as possible.
County Properties can help. Contact us today!