As you approach retirement, you might be curious about how you can continue to earn income without working full-time. Or perhaps you’re interested in retiring a few years earlier than planned. However, in order to pull it off, you’ll need to create a source of passive income. House Flipping just might be the answer to your income needs as a retiree.
These guidelines will walk you through all of the important steps of your first house flipping in your retirement.
Choose the Right Property
Naturally, your first task will be choosing the right property. You want to ensure that the flip will pay for itself and provide you with profits in the end. So, you want to choose an affordable property in an up-and-coming area. This way, you can be sure, that it will increase in value. Auction recommends choosing a home with a desirable floor plan – this will make renovations easier to handle!
Finance Your Purchase
Some investors choose to pay for properties to flip in cash, but there are other financing options. For example, you may be able to take out a mortgage for an investment property. If this is an approach that you’re interested in, you’ll need to meet with local lenders to talk about your loan possibilities. Chase states, if you want to take out a mortgage on investment property, you can typically expect to put down a 15 to 25 percent down payment.
After buying an investment property, you’ll need to dive right into renovations. Chances are, your property is a bit of a fixer-upper, but in order to get a great price on the market. You’ll need to invest in extensive updates to attract buyers. Check out photos from other listings in your area to find out which features and amenities buyers are most interested in. Consider upgrading kitchen appliances and fixtures, remodeling the bathrooms, finishing the basement. Consider adding accent walls and backsplashes to create interesting visuals.
Marketing Your Property Online
You’ve finally wrapped up renovations, and you’re eager to put your home on the market and find a buyer! But simply sticking a “For Sale” sign in front of your house may not be enough to make that sale. Instead, you’ll want to consider digital marketing strategies, as well. For example, you can launch a Facebook advertising campaign for your property! You can create ads quickly with a Facebook ad template, including adding your personal logo, fonts, colors, and other brand elements.
Other Marketing Techniques
In addition to advertising your flipped property on social media, you can also engage in other forms of marketing. Of course, there’s nothing like the power of word-of-mouth marketing! Let people in your circle know that you’re putting your property on the market – you never know if one of your loved ones might be interested! Furthermore, you can also work with a real estate agent who represents sellers.
To find a great agent, Nerdwallet recommends asking agents you’re considering about their background and experience – ideally, you’ll want to find someone who has worked with retirees involved in house flipping before. They will have a better understanding of which marketing techniques would be appropriate for your property.
It’s very important not to rush into house-flipping as a retiree. If this is a form of investment that you’re interested in, you need to research the process carefully so that you can spend your money wisely. With these recommendations, you’ll be able to make investment decisions and successfully flip your first house in retirement! If you’re new to flipping houses or have no experience, you may want to read up on How To Flip A House.