Fix and Flip: A Senior’s 6-Step Guide to Flipping a House

6-Step Guide to Flipping a House in South Carolina
Home Renovation in South Carolina

House flipping shows are all the rage, and for good reason – you can make massive profits by buying, renovating, and selling a property. It is the ideal business venture for seniors, who can put their years of experience negotiating, budgeting, and management to good use.

Interest rates are low, there’s tight inventory and high demand for entry-level homes. It’s no wonder that flipped houses take up a whopping 5.1% of total house sales. House Hub Real Estate Investments outlines how you can buy into this lucrative business in six easy steps.

Plan

A rough project plan can go a long way. The three main things you need to account for are:

  • Budget: How much do you have to invest?
  • Timeline: What is the deadline for this project?
  • Scope: Cosmetic, structural, or mechanical?

Finance

According to CNBC, house-flipping profits are at a 20-year high – so it’s time to go all-in with extra retirement funds or any existing investments. Whether you refer to a lender or financier or simply band the money together yourself, experts swear by the 70% rule. This holds that the investor (you) should pay 70% of the after repaired value (ARV) of a property minus the repairs needed to calculate the budget.

Now’s the time to generate a little extra income to pad your bank account. Getting a part-time job is a good option for those nearing or in retirement, as the choice of work is broad and varied. Apply your talents and skills to a job that will allow you to help finance your fixer-upper, as opposed to dipping into retirement savings.

Partner

Building a network of reliable partners is crucial to a successful flip. It really does take an army – of general contractors, HVAC technicians, roofers, plumbers, painters, and electricians. Ensure they have references and are timely and organized, and remember to talk about pay upfront so you know how much to account for payroll.

In addition to home improvement experts, you’ll need to partner with people who can help you on the business side of things. For example, if you want to promote your house flipping venture or simply show the progress you’re making on your latest project, you’ll need a website. Research web development agencies to find the right fit for your needs. Once your site is up, you can use it to show off your properties and field inquiries from potential buyers.

Locate

The Center for Urban Studies explains that finding the right home is a numbers game, and it boils down to how many properties you view. Find good realtors, and exhaust their services because finding a deal can mean buying below market value with wide margins to cover all the expenses and labor.

Neighborhoods will usually have a ‘class ranking’ – from wealthiest to lowest-income areas. You’ll want to figure out which neighborhood affords you the best margins and is likely to be of higher market value due to factors like cleanliness and safety.

Renovate

This is what all your potential buyers are going to be obsessing over, so make it worth their while. Think like your customer – and look into evergreen updates like modular kitchens, professional-grade equipment, and hardwood floors, all of which can boost the value of your home exponentially.

Never underestimate the power of small tweaks if large renovations don’t fit your budget. A fresh coat of paint can have your place looking brand new, while a beautifully landscaped backyard may be of great appeal to a wider audience.

Wallpaper is another great bang for your buck. Modern wallpaper is affordable, stylish, and elegant, and it can take a space from blah to wow quickly. Peel-and-stick wallpaper is a great solution if you want to save on labor costs, as it is easily DIYed. The adhesive backing reduces the need for glue and other equipment and can be repositioned and removed with ease. If you’re not satisfied with existing designs out there, go for a customizable wallpaper. This is the perfect addition to any space as it will match the aesthetic that you and your contractors have worked hard to actualize. Bonus – it’ll never be out of stock because you customized it on demand!

Sell

Experienced flippers have a fast turnaround time of around 90 days. The sooner you have the house up on the market, the more you’ll save by not having to dish out utilities, water, and homeowner fees each month.

If you’re thinking about flipping a house, make sure you understand the risks involved; it certainly isn’t as easy as they make it look on TV! Planning and forethought can go a long way, though, and it is the perfect project for seniors to exercise all the skills and knowledge they’ve built up over the years.

House Hub Real Estate Investments finds the best properties in foreclosure, bank owned foreclosures, South Carolina investment properties for sale, handyman deals, fixer uppers, discount homes, distressed property, and buys them at great win-win prices for both us and the home seller. Contact us today for more information! 864-272-5400

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