If you’re looking for ways to stay busy and earn some money in retirement, house flipping might be the perfect venture for you! Buying fixer-uppers, making a few repairs, and reselling them for profit can be a very lucrative business. The best part? You don’t need any real estate experience to get started. With good research skills, a willingness to learn new things, and the right professionals on your side, you can build a thriving house-flipping business in your retirement!
Partner with a Great Real Estate Agent
Finding the right property is key to a successful house flip. First and foremost, you should be looking for a home in a great location. Make sure it’s close to amenities like schools and grocery stores. Research the neighborhood and learn about the demographics that live there and what they value in a location. Once you’ve found a few ideal locations, look for a property that needs a few cosmetic upgrades. Avoid homes in need of major repairs or renovations.
Working with a real estate agent is the easiest way to find properties. A reputable real estate company like DOC Real Estate will know the best locations for finding homes with flipping potential. Your real estate agent can also help you find foreclosed homes and as-is properties that are typically priced lower than surrounding homes.
Make High-ROI Improvements
As the owner of a house-flipping business, maximizing profits should be one of your main goals. Stick to home improvements that will offer the highest return on your investment. For example, Fit Small Business suggests simple cosmetic upgrades like replacing the siding on the home, updating the front door, improving the curb appeal, and replacing carpet with laminate flooring.
Repainting the walls or hanging wallpaper is a great way to refresh the interior without spending a lot of money. Wallpaper is great for adding a sense of luxury to your flipped homes. You can even order your own one-of-a-kind wallpaper to ensure your design nicely complements the rest of the home. Consider peel-and-stick options for easy DIY application. Peel-and-stick wallpaper is easily removable and repositionable, so it’s ideal for quick renovation projects.
Hire Help for Specialized Projects
While you might be able to handle many of these cosmetic improvements on your own, be sure to hire professional help when you need it. Don’t attempt projects that are unsafe or fall outside your skillset. Family Handyman recommends always hiring a professional for electrical work, plumbing, roofing, mold removal, foundation work, and window installation.
Hire contractors based on references from people you trust. For example, your real estate agent might know some reliable contractors who can work on your flipping projects. Make sure your contractors are licensed and insured so you can avoid major costs if something goes wrong. Before signing a contract, ensure you and your contractor are on the same page regarding the timeline of your project. Sticking to an efficient timeline will ensure you get your flip done quickly so you can minimize the money it costs in mortgage interest payments to hold onto the property.
Maintain a Budget for Each Flip
Starting a house-flipping business requires quite a lot of up-front capital. Make sure you create a realistic budget for each flip so you can make a return on your investment. You can expect to spend between $10 to $60 per square foot for your renovations. Keep in mind that renovating an older home can cost more than a new one, especially if you’re facing home systems that aren’t up to code. Make sure you can get financing for your flip before finalizing your budget. Most importantly, be sure to set aside some of your funds for unexpected costs!
Flipping houses in retirement is a great way to bring in some extra income and keep yourself busy. With a little help from a great real estate agent and some reliable contractors, you can get started house flipping with little to no experience. Start looking for potential properties today!
Are you looking for the perfect property to flip? DOC Real Estate can help! We provide real estate services in the greater Indianapolis area. Call today! (317) 888-7333