Real Estate Investing: A Wonderful Career for Active Seniors
Not everybody wants to relax and travel when they retire. Instead, many of us use it as an opportunity to begin a late-life career. Popular among seniors: home flipping. Why? Because it’s a fun challenge that comes with the potential for a huge return. Here are some tips from Triumph Property Management that will help you get started from scratch.
Cash Flow Questions
Some of your first questions probably have to do with whether or not you can afford to flip a home. Fortunately, you probably need less cash than you think. Rehab Financial Group notes that they like to see buyers with at least $12,000 in the bank before extending a loan. You’ll also need some funds available for making upgrades and repairs. Fortunately, you probably already possess the skills to make many functional and aesthetic updates on your own.
You may also be concerned about your credit. If you haven’t had a mortgage for a while and don’t have credit card debt, you may need to increase your credit score to qualify for the best rates on an investment mortgage. But, if your score is at least 680, and you have money in the bank, then you should be fine.
Setting Up For Success
Flipping houses is more than just a hobby. It can easily become a full-fledged business. This means you need to handle administrative and other business tasks early in the process; plan to set up your LLC before closing so that your new property does not become a danger to your personal savings if something goes wrong.
You can use an online formation service for this. You’ll also want a logo for your business. Rather than hiring a graphic designer, you can use a logo maker and download your design for free online. This will save you time and money as you’re starting out.
Next, you’ll want to get to know everything from how your income and profits affect your taxes to how to market your new property. Keep in mind that houses that you don’t live in may be subject to both capital gains and self-employment taxes.
There are ways to increase your deductions, but it’s best to consult with a tax professional. Using dedicated accounting software makes things easier come tax time, and you can also use software to handle your invoicing. Investing in these conveniences from the outset of your business will make managing your finances much more straightforward in the long run.
It’s All About Style (And Location!)
So, how much can you make flipping a home? There’s no single answer to that question, but there are a few ways that you can maximize your return, and it goes back to what we mentioned before about making updates yourself. Two areas that are the easiest to upgrade are the walls and the floors. Customizable wallpaper will transform your walls from an eyesore to eye-catching, and you won’t have to wait for paint to dry or add a second coat.
And, if you make a mistake, quality wallpapers are repositionable. Be on the lookout for peel and stick options that you can design yourself, which can help you add a bit of local flair to your rental. For example, if the home is in Miami, an ocean-themed wallpaper will do quite nicely. Or, if your property is in Nashville, your wallpaper might reflect the city’s musical heritage.
Turning your attention to the floors, about $200 and a day are all you need to refinish existing hardwood. This Old House notes that you may not have to sand them completely down, but you will have to learn how to use a buffer. You also have the option of putting down peel and stick floor tiles, which are surprisingly durable and used in many rentals across the country.
When becoming an entrepreneur is part of your retirement plan, consider real estate. Flipping homes isn’t as complicated as it sounds, and you likely already have many of the skills necessary to keep your investment lower than your return. Whatever you choose, good luck with your retirement, and feel free to share your success with this blog.
Based in Nevada, Triumph Property Management is one of the leading property management businesses with a quality unlike you’ve ever experienced before. We provide services that cater to everyone’s needs including clients, property owners, investors, and developers.
We welcome new opportunities and partnerships to create an experience that implements achieving goals, creating strategies, and organized planning to protect our client’s investments.