How to Start a House-Flipping Business in Your Golden Years

Retirement leaves many people with a fixed income and plenty of free time. If you're looking for a way to make money in your golden years, the real estate market has numerous opportunities. Here are five things you need to know about starting a house-flipping business as a senior.

Learn How to Find Great Investment Properties

The key to flipping a house successfully is finding an affordable property that you can upgrade on a budget and sell for a sizeable profit. Buying a cheap house with structural problems is rarely profitable because you spend so much bringing the building up to code to sell. Likewise, purchasing a home that needs no work will not be a good investment because you aren't selling it with added value. 

Look for investment properties that are structurally sound but are outdated and need cosmetic work. Updating bathrooms, renovating the kitchen, and adding fresh coats of paint are relatively cost-efficient upgrades that improve the value of your investment. The best practice is to pay no more than 70% of a property's resell value, so it's important to get an accurate estimate on the cost of upgrading the house you want to invest in.

Research Financing Options

The method in which you find an investment property determines the type of financing you must secure. If you buy a foreclosed property at a real estate auction, traditional financing is not an option. You must obtain a hard money loan from an investor to afford the property or pay for it out of your own pocket. If your purchase a property that is sold by the owner or a realtor, you may use a mortgage lender to finance the loan you need.

Increase the Value of Your Investment

It is crucial to invest in property upgrades that will make your investment home more desirable once it hits the market. One study suggests that 80% of homebuyers are more likely to buy a house with a newly renovated kitchen, so this upgrade is often worth the cost. The average cost of a complete kitchen remodel is $17,000, but the current market sees an average return on investment of at least 50% of your overall budget.

Other valuable upgrades include new flooring and updated bathrooms. In some cases, new windows, paint, and siding can add cosmetic value.

Market Your Investment 

The best way to sell your home once it's ready to hit the market is to list the property with a realtor. Tyler Vincent Real Estate is your best choice in and around Brooklyn. Compare your property with others for sale in the neighborhood so that you can come up with a fair asking price that gives you a decent ROI. If your home is priced competitively and advertised properly in a hot real estate market, it can sell within a few days.

Turn Your Hobby Into a Business

Once you have become an experienced house flipper, you may want to start a business to bring in extra income during retirement. Choosing a business structure is a crucial first step. Many people choose to form limited liability corporations, but there are other options if this structure doesn't fit your needs. You should also draft an operating agreement to establish how you want to run your company in New York. Setting an advertising budget and choosing contractors to work with can also benefit your business.

The real estate market makes it possible for senior entrepreneurs to make a living by flipping houses. Use these steps to get started. And when you’re ready, list with Tyler Vincent Real Estate for maximum success. 347-457-6364

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