If you’re looking to get into real estate, flipping houses might be the ideal way to do it. Although you’ll need to dedicate a lot of time and energy to this line of work, there are many positive reasons to consider flipping houses as a primary income source in retirement. Read on to find out everything you need to know about flipping houses as a senior.
Where to Start Looking for Properties
A great way to get started flipping houses is by looking at properties already on the market in Myrtle Beach, SC. Look for foreclosures, short sales, or homes below market value. Talk with real estate agents, and research these properties to ensure you know what you’re getting into.
How to Finance Your Deal
Many financing options are available if you're a homeowner — even if you don’t own your home outright or you're new to investing. For example, a home equity conversion mortgage is designed specifically for seniors who want to borrow against home equity. The main benefit of HECM loans is that they're multipurpose — so you can use them to make improvements to your home or to buy another property. Because they feature low-interest rates and flexible repayment terms, they can be ideal for seniors with limited income.
Renovations to Add Value
One of the easiest and most cost-effective ways to increase the value of your property is through renovations. If you’re planning on flipping or renting out your home, adding a new bathroom, kitchen, and flooring can do wonders for the way potential buyers and tenants look at it. To keep the air in your home cleaner, install a range hood to vent grease, smoke, and aromas from your kitchen. However, as with any renovation project, there are some things to avoid. For example, stay away from updating things not clearly visible; these rarely boost your home’s resale value.
The 70% Rule
When you're flipping houses, you want to ensure you make a return on your investment. The 70% rule assists home flippers in determining the highest price to pay for an investment property to be profitable. In general, spend no more than 70% of the home's after-repair worth, minus renovation cost.
What to Do Before Putting Your Home on the Market
Before your home hits the market, clean it up and make it shine. Remove clutter, organize the closets and garage, and clear out any extra items that prospective buyers could potentially regard as junk. Also, ensure all the appliances are in working order — this shows potential buyers that you maintain your home. Add some fresh plants or flowers to entryways or patios to boost curb appeal.
Having a System in Place
If you hire workers to help with rental maintenance, you'll need a system. Small business payroll processing can be easy. Even if you only have a few employees, having a well-organized payroll system ensures everyone gets paid on time. Look for a platform that supports same-day direct payment, automatic payroll scheduling, and automatic calculating and tax filing.
Flipping houses is an endeavor you can pursue successfully well into your later years. Research any potential properties thoroughly before deciding on one that’s right for you.
Visit The Boyd Team for help with your property goals in Myrtle Beach.
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