House Flipping Strategies for Seniors

Guest Post by Andrea Needham

Flipping houses is a popular and fun way for retired seniors to make money. If you’re interested in doing the same, the following tips can help you get started whether you are in Anchorage, AK or Cedar Rapids, IA. Get advice and assistance on everything from raising funds to finding the ideal property and boosting value from PRK Williams Building Group.

Raising Funds

You’ll have enough savings to buy a house outright if you’re lucky. If not, you’ll need to raise the money through a mortgage or another method. You might want to contact some local banks in Anchorage or Cedar Rapids about mortgages to find out about their affordability checks, interest rates, and deposit requirements. Remember that you’ll need money for renovations in addition to the purchase price, and always add 20% for unforeseen expenses.

Funds can also be raised through investors. This is sometimes the best option if you plan on buying a house at an auction, as getting a mortgage on these properties isn’t as straightforward as obtaining a mortgage for a traditional home purchase. Having an investor rather than a bank loan has the advantage that you’ll have more freedom with the funds. However, since they control the purse strings, you may have to bend to their opinions more than you’d prefer.

Whichever route you choose, keep track of all of your receipts and invoices because investors will want to know. This is especially critical if you’re hiring help. The last thing you want is to mess up how you pay people, so invest in payroll processing services. The company will do the tracking and processing for you, which leaves you more time to make renovation decisions. Plus, you don’t have to worry about getting your figures wrong and getting into trouble with the IRS.

What to Look For

Location is one of the most influential factors when looking for a house to flip. Look in areas where property prices are stable or rising. In June 2022, home prices in Des Moines increased 8.5% over the previous year. It may sometimes seem appealing to take on a challenge and buy a house that requires extensive renovations. Just keep in mind that the longer it takes to renovate, the longer you’ll pay the mortgage and meet the house’s operational costs. 

Look for houses you can improve by simply painting or with a few appliance upgrades. Adding a new wall mounted range hood can make a huge difference to the kitchen’s appearance and functionality, and they’re reasonably priced for a house flip. Try to find a property with a solid structure, character, and unique features. Stay away from homes with foundation issues as they not only put a strain on your finances but can also set you back months. 

Consider particular renovations if you want to maximize your profit when selling. Here are the top renovations to add value to your home.

• Building an addition
• Remodeling the kitchen
• Renovating the bathroom
• Updating the HVAC
• Adapting the home to make it more accessible
• Updating lighting
• Bringing outdoor living space to life

It may be tempting to do the renovations yourself, but most people don’t have the skill set for these upgrades. If you’re looking to complete larger projects, work with a contractor like those with the PRK Williams Building Group.

Once all renovations are complete, it’s time to sell your house. If you plan on selling your property without the help of a real estate agent, having a pre-inspection report in place is a good idea. This can answer any questions a buyer might have. 

Marketing Your House-Flipping Business

Creating an unforgettable logo is a good way to set yourself apart from the competition and stand out in the house-flipping industry. You can avoid the high costs of logo designers by creating one yourself using an intuitive online graphic logo design tool. You can select a style and icon, add the text you’d like, and adjust the fonts and colors.

Stay on Top

At first glance, flipping houses may seem like a complicated process. The trick is to stay on top of some simple rules. Doing so allows you to enjoy your retirement years while making a profit from flipping houses. Whether you’re seeking consulting expertise or full representation when buying and selling houses, contact the experts at the PRK Williams Building Group.