Seniors interested in house flipping are in luck. In many places, the housing market favors sellers, with homes usually going for well above market price. Getting started involves finding the right properties and solid financing, ensuring you can complete desirable updates. Then, it’s time to sell for a profit. If you want to know how you can flourish as a house flipper, Better Homes & Properties explains how seniors can pull it off.
What to Look For in Homes
One of the first things you need to learn is how to find the right home to flip. As with all kinds of properties, Moving.com points out that location matters. You want to choose a desirable neighborhood that either has a long history of solid sales or is up-and-coming, as both can have opportunities.
After that, research what homes in the area typically offer buyers. Explore square footage, both for the house and the lots. See how many bedrooms and bathrooms are the norm. Ideally, you want to choose properties that come in close to – or can be turned into – the average for those features.
Once you do that, you’ll need to find properties selling for far below the typical price in that immediate area. Remember, while the median sale price in the United States is around $428,000, different states will have unique price points. If you find a home with potential, research comps to see what it could be worth after any updates.
If you find anything with potential, get an inspection. Certain issues are costly to repair. For example, foundation problems can come with massive price tags, usually in the range of $1,800 and $6,500, though potentially more if the issue is severe. Plus, foundation repairs don’t come with great ROIs.
Where to Find Bargains
While you might find a low-cost property listed through traditional real estate sites, those aren’t always the best places to secure deals. Instead, you may want to look at websites that focus on FSBO listings, as the prices might be lower.
Specialty sites are worth checking when you want to find a property to flip. You may also have luck on Craigslist or Facebook Marketplace. Some home flippers actively pursue houses instead of looking for existing listings. For instance, you could set up a website to attract potential sellers or create mailers to advertise your interest.
Which Updates to Do
Once you have a property, you’ll need to decide on your updates and repairs. Some fixes aren’t optional. For instance, in most cases, you’ll need to handle any structural issues, including problems with the foundation or roof, if you want to pass inspection. The same goes for electrical, plumbing, and HVAC repairs.
Otherwise, you need to choose upgrades that come with solid ROIs. Since kitchens and bathrooms are priorities for many buyers, you want to make sure those meet or slightly exceed the norm in the neighborhood. Repainting the interior doesn’t cost a bundle but has a big impact. The same can go for flooring.
Hiring Pros for the Job
If you can’t handle the updates on your own, you’ll need to hire people to tackle these jobs for you. Doing so may require you to handle some business-related matters beforehand. For example, if you decide you want to hire employees, you’ll need to register your business with the state and secure an employee ID number (EIN), which allows you to legally hire employees (as well as sign up for things like business bank accounts).
Next, you’ll need software to help with managing your payroll. Most modern payroll software will let your employees track their time and enjoy same-day direct deposits. You can even set the payroll to run automatically, which means you can spend more time flipping those houses than on things like paperwork.
How to Sell the Home
After you finish your updates, it’s time to sell. If you want to make sure that your business is your primary focus, hire a real estate professional like Better Homes & Properties. Often, going that way leads to a better price than an FSBO sale. Plus, they’ll handle the advertising, home tours, and more, giving you more time to focus on your next flip.
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