House flipping can be a lucrative and satisfying way to spend your retirement. Use the knowledge you’ve gained over the years about homeownership and business to take the next step. Check out this list of best practices to get on the path to success.
Setting Up Your Business
For many house flippers, forming a limited liability company in California is the best move. LLCs allow business owners to separate their finances from those of the business, giving them a layer of protection. When establishing yours, create an attractive logo that will appeal to potential customers.
Finding Properties
Location is the most important thing for finding properties that are good flipping investments. Houses might be cheaper in less desirable areas, but spending a large sum of money to renovate a home in an area that isn’t attractive to buyers can result in huge losses. Instead, look for run-down or older houses in nice neighborhoods that potential homebuyers will be interested in living in. Rehab Financial recommends working with a realtor who can help you find properties that suit your needs.
Cost-Efficient Fixes
Curb appeal is extremely important when selling a house. If the outside isn’t appealing, many buyers will not look inside. Small, inexpensive changes such as painting a front door and adding lights and potted plants can go a long way in boosting a home’s outdoor appeal and welcoming buyers.
Kitchens sell houses, so a kitchen remodel is an effective way to increase a home’s value. Some pieces of the remodel may be done easily, such as replacing the backsplash and painting cabinets. However, plumbing updates are best left to professionals, as mistakes can be very costly. Most plumbers charge between $45 and $150 an hour. To find one who is reasonably priced and qualified, read reviews online before hiring and make sure anyone you consider is licensed and insured.
Red Flags to Watch Out For
Flipping houses can make you a lot of money, but if you choose the wrong one, it can be a huge waste of money and time, so it’s important to thoroughly inspect the home before purchasing. Certain issues can be particularly costly, and it’s best to avoid houses that have them.
Foundation repairs can be very expensive, so look out for sloping floors, cracks around the house, and water pooling in the basement. Missing shingles and leaks can be indicators that a roof needs repaired or replaced, which can run you thousands of dollars. Fixing water damage can also be costly, as can the mold that grows when water gets into walls and other spaces. Look out for discolored walls and leaks, which can indicate a problem.
When creating your budget, hope for the best-case scenarios but plan for the worst. Add 20% to your original estimate to ensure any major repairs, like electrical work, HVAC upgrades, or asbestos issues, can be covered without going over budget.
Selling Flipped Homes
When it comes time to list the house, you need attractive pictures. If you don’t have experience with photography, hire a professional photographer to ensure your images are high-quality. You can list the house for sale yourself on websites such as Zillow and Trulia, or you can work with a real estate agent who can take care of listing properties for you.
Don’t be afraid to pursue your house-flipping dreams. With a little research and the right professionals working alongside you, you can make a pretty penny turning old houses into somebody’s dream home. Join The Home Remodeling Bootcamp for Women today!