As you age, it’s more important than ever to set yourself up with an income stream that doesn’t depend on the ups and downs of the job market. That’s why many seniors are turning to house-flipping as a source of income — even if they’re new to real estate investing. With this in mind, here are some great tips from The Scislow Group to help you get started as a senior house flipper while increasing your chances of financial success.
Choose Your Niche
As with any business venture, you need to know what your niche is and who your audience is. This increases your chances of success in house flipping because you can target a particular area with the potential for increasing value. For example, you could choose an up-and-coming area that’s going through gentrification. Knowing the ins and outs of certain aspects of flipping can be a great advantage.
Find the Ideal Property
Flipping houses has shorter hours and lower costs than a full-time job in general contracting. So, it could be ideal — especially if you live in an area where bank foreclosures are common. All you need is an eye for value — and lots of determination and elbow grease to take on one of these projects.
Get Pre-approved for a Mortgage
If you’re looking to buy a house, you may need to get pre-approved for a mortgage. Luckily, there are some loan options available for seniors. The Federal Housing Administration has several loans geared toward seniors. Home Equity Conversion Mortgages are helpful for senior homeowners who want to access home equity without selling the home. They’re a special type of reverse mortgage that provides cash up front, and the homeowner isn’t required to make loan payments. Principal and interest are usually repaid when the home is sold.
Make Upgrades That Add Value
While some home flippers choose to keep the home as-is, others may want to go a step further. Renovations, including adding an attic bedroom or remodeling your kitchen to meet modern standards, add value to your home when you sell it. Even something as simple as repainting your home or adding a range hood to improve air quality can make a difference in how much money you can get for it when you’re ready to sell.
Sell Your Home
Curb appeal can be essential when it comes to luring buyers. Painting the home’s exterior spruces up the property, and landscaping can help draw attention to exterior features. A skilled real estate agent from The Scislow Group can help you get top dollar when selling your home. They have access to data from past sales and can tell you how much similar property has sold for in your area.
Organize Your Payroll
Even with only a few employees in your house-flipping business, having a well-organized payroll system ensures everyone gets paid on time. There are plenty of options for small business payroll processing. As a rule of thumb, opt for payroll processing services that support same-day direct payment, automatic payroll scheduling, and automatic calculating and tax filing.
Successful Flipping for Seniors
There are many benefits for seniors in house flipping. By finding the right properties, making value-boosting upgrades, and using software to manage your payroll, you can get into flipping houses to supplement your retirement income or make it your primary source of income.
The Scislow Group represents the best and brightest in the industry, and we’re always striving to lead the field in research, innovation, and consumer education. Call (952) 953-5000.