Guest post by Carla Lopez at carla.lopez@boomerbiz.org.
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You’re never too old to try new things, especially if retirement has you bored and antsy. Many seniors like yourself are looking for more out of their golden years. More being something that’s not only fulfilling but also an enjoyable way to generate a new revenue stream. Of course, most people don’t have the slightest idea as to what goes into flipping houses or where to even start. If that sounds like you, then you can start right here with the following tips on how to get into house flipping:
Make Sure You Have Enough Money
There’s no way around it: Flipping houses costs a lot of money. Not only will you have to buy the house in question, but you’ll also need to pay for any renovations and improvements made. On average, the cost of flipping a house works out to the initial purchase price plus 10%, which goes into the fixing up part.
It’s also best to purchase the house in cash if you can. This way, you can avoid taking out a mortgage loan, paying interest, private mortgage insurance, and other fees. If you do take out a mortgage for the project, you’ll need to have excellent credit and be prepared to continue paying the mortgage for each month the house doesn’t sell.
In addition to having enough money, you’ll need to manage your project budget. Accounting software that flexes with you like QuickBooks Online Advanced makes things like budget monitoring, financial reports, and payroll tasks much easier and efficient. It’s preferred by countless business owners as you can rely on the platform to show you the ropes and give you support so you can get real-time insights on your house flipping business’s profitability.
Know the Difference Between Potential and a Lost Cause
In addition to being able to fund your new project, another crucial part of house flipping is knowing the difference between a flip and a flop. The ideal house for a flip exists in a neighborhood that’s on its way up and attracting plenty of new families and young professionals. It should also be in a prime location that’s within close proximity to good schools, city centers, and public transportation. More importantly, it should be a very low-crime area.
Additionally, the house will have some important physical qualities. For example, it’ll have things like a strong foundation, good plumbing, and a good layout that needs very little intensive renovations. The last thing you want is to invest in a flop, such as a house that’s infested with mold, needs new piping, and has cracks in the foundation. These things will end up costing you more than the house will sell for.
Find the Right People for the Job
At the very least, you’ll be needing a contractor that can go over the layout of the house with you to see what it needs. Of course, you’ll likely need to call in other professionals, including painters, landscapers, and other specialists. What’s most important is that you find professionals that are reliable and have a good reputation. As you move forward with your business, you’ll want to work with the same contractors and subcontractors to ensure the quality of each project.
House flipping can be an incredibly rewarding project to start at any age. As long as you get to know your local housing market and how to spot a potential house, you’ll be able to turn a profit and make someone else’s house-related dreams come true.
Image via Unsplash
