5 Steps for Aspiring Senior House Flippers
Even if you’ve saved up a comfortable nest egg for your retirement, you might be interested in other profitable projects that can help cover your expenses in your golden years. And if you’ve ever been curious about house flipping, retirement might be the perfect time to give it a try! With expert guidance from DuPont Wealth Solutions, you can make smart real estate investments with low risk. Here’s how to approach your first house flip.
Choose the Right Property
Investing in a property that ultimately turns out to be unprofitable can put a dent in your retirement portfolio. That’s why selecting the right property for your first flip is crucial. Flipping Prosperity recommends personally walking through neighborhoods where you would consider investing, checking out real estate auctions online and in-person, and researching affordable foreclosures for sale. You can also get in touch with an investor-friendly real estate agent for guidance. Before purchasing a particular property, make sure that you understand what kinds of repairs you’d have to carry out and how much it would cost you.
Secure a Mortgage Loan
While you may be able to purchase an investment property in cash, you can also qualify for a mortgage loan. Consider which option would be most appropriate for your financial situation. It never hurts to check in with a financial advisor to see what they would recommend! To get a mortgage on investment property, HSH states that you’ll need to be prepared with a minimum down payment of 20 to 25 percent and demonstrate your financial reserves.
Form an LLC
You’ve purchased your first home to flip, and you’re already thinking about how you can use the future proceeds from this sale to fund your next real estate investment. If you see yourself purchasing more investment properties in the future, you may want to form your small real estate business as an LLC. This will allow you to qualify for specific tax breaks and enable you to protect your personal financial assets, which is especially important in retirement. You can register LLC in Ohio through a convenient online formation service to save money.
Carry Out Renovations
Now, you’re ready to get to work on renovating your property! This is the most labor-intensive aspect of the house flipping process, and you’ll likely want to hire contractors to take care of major repairs. However, you can likely save money by tackling smaller repairs on your own.
Before you begin making renovations, spend some time looking at listings for homes in your neighborhood that recently sold. Examine the photos from the ads to get a feel for what buyers in your area are looking for. You’ll want to prioritize projects that will boost your home’s value, like updating your kitchen cabinetry and appliances, swapping out old bathroom fixtures for new hardware, repainting your walls, and adding new flooring.
Selling Your Property
You’ve completed the necessary repairs and renovations, and you’re excited to put your first flipped property on the market and find a buyer! Naturally, you’d prefer to connect with the right buyer quickly. You’ll need to price your home competitively in comparison to similar homes in the immediate area, take time to stage it properly, and even spruce up the yard to create more curb appeal. It’s also a good idea to list your home in the spring when more buyers are looking at properties.
Flipping homes and making sure that your efforts are profitable can be complicated. By researching the process and potential pitfalls in advance, you can make worthwhile investments. With these tips, you’ll be prepared to start flipping properties!
Need guidance on managing your assets in retirement? Turn to DuPont Wealth Solutions for financial advising! Call us today at 614-408-0004 to learn more about our services.
Article courtesy of Karen Weeks at elderwellness.net
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