The Senior’s Guide to Successful House Flipping
Tina Martin of ideaspired.com | [email protected]
Owning real estate can be a lucrative business, but it’s not for everyone. If you’re older and wondering if you’ve missed your shot at the real estate market, don’t fret — it’s never too late to cash in on the real estate market. Below, we share some tips to help you get into the house flipping business and be successful at it.
Finding Your First Fixer Upper
As a senior looking to break into real estate investing, you want your first home improvement project — one that helps kick-start your business — to be easy. After all, making money can be difficult enough. Why make it more complicated by jumping into an overly ambitious renovation?
Getting a Mortgage and Down Payment Options
One of your first steps toward buying a house is getting a mortgage. Because mortgages have different rules, fees, and interest rates from lender to lender, it’s essential to shop around. There are many ways for you to save money for your down payment. One great way is to sell your current home and use those funds and the savings you’ve accumulated over time. Also, consider using equity from any other property you currently own.
Renovations That Boost Value
If you’re hoping to maximize profits on your flipped home, kitchen renovations are usually a good bet. Consider incorporating high-end countertops and fixtures that appeal to both older and younger buyers. Choosing the right plumber for your kitchen remodeling job can make all the difference, which is why you should work with the skilled and trusted professionals at Excellent Plumbing, Heating & Mechanical.
The 70% Rule
Home flipping can be tricky, but some helpful rules can make it easier. One of them is the 70% rule. According to this, keep the purchase price of the home you plan to flip below 70% of the home’s after-renovation value minus the costs of renovating the property.
Tracking Income and Expenses With Accounting Software
If you’re in the business of flipping houses, then you know that time is money. The last thing you want to spend your precious time on is accounting and bookkeeping. That’s where accounting software comes in. Put your accounting software to work for you to quickly and easily track your income and expenses, so you always know where your business stands. In addition, accounting software can help you manage your taxes, stay compliant with regulations, and manage your cash flow. In other words, it’s a crucial tool for any house flipping business.
Selling Your Home
When it comes time to sell your property, you want buyers knocking on your door. By simply looking at comparable sales in your area, you can determine what you need to do to boost property value. Is it necessary for you to make updates or renovations? Knowing these details ahead of time helps ensure an easy and successful sale down the road.
Taking Your Time
Taking time to learn what you’re getting yourself into before diving headfirst is never a bad idea. After all, there’s no such thing as a stupid question when investing in property.
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