Work Through Retirement: How Seniors Can Get into the House-Flipping Business
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Guest post by Tina Martin
If you’re planning to work in retirement, you’re not alone. According to a recent survey, about 27% of people plan to work part-time in retirement. This is not a big surprise since leaving a full-time job means the average person will gain some 2,500 to 3,000 hours a year that can be devoted to other activities. During retirement, you have an opportunity to work flexible hours and to chase your passions whether you want to start a business or work as a tutor, driver, or dog walker.
If you have an interest in real estate, you may want to try the house-flipping business. To flip houses, you need a plan, some tools, and an understanding of the real estate industry.
If flipping a house is of interest to you, here is the basic process:
Set your budget and stick to it
Secure the funds for your first house flipping project
Find a house that you believe will be a practical flip and is within budget
Plan the updates and changes you want to make to the house
When done, stage the home, determine your sales price, and put it on t
Make Your Dream a Reality
If you do have an interest in flipping houses, you need to create a blueprint that will help increase your chances to be successful. A business plan is going to be one of the best maps you have. Your plan should focus on your intent to flip and sell houses, along with an analysis of the current market.
Once you have a business plan, you'll want to determine which legal structure will work best for you. Consider establishing an LLC, which protects you from personal liability. In most instances, you cannot lose your house, savings accounts, vehicles, or other personal assets due to a lawsuit or bankruptcy involving your business.
Learn the Tools of the Trade
When it comes to purchasing a fixer-upper, need to know the type of job you're getting into. As you look at homes, watch for signs that spell out expensive repairs or problems that may not be worth the time. For example, if you smell moisture in the building, it could mean that the building is uninhabitable. There may be toxic mold and damage to the home's structure. Likewise, sloping floors may indicate structural issues.
Before purchasing a property, determine your budget. A common rule to house-flipping is to never buy a property for more than 70% of what you can sell it for. To ensure that you do not have too expensive of a repair job on your hands, schedule a professional inspection in advance. When buying a fixer-upper, you should add about 20% to the estimate for major repairs of serious problems, including foundation issues, asbestos, mold, and outdated HVAC systems.
Boost Your Property Value
Home renovations can boost your home's value immediately. Whether a renovation project is worth it depends on the cost and time it takes to complete the renovation and how much value it adds to the property. Some of the easiest investments include:
• Adding insulation to the attic
• Replacing the garage door
• Updating the kitchen and/or bathrooms
If you want to continue to earn money during retirement, house flipping can be lucrative and fulfilling. When you know the tools of the trade, you can begin your new journey into the next phase of your life. Good luck!