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Running a successful house flipping business requires someone with time on their hands and seniors have plenty of it. If you are looking for something to do after retirement that can give you a decent income, you should consider fixing and flipping houses. You do not have to be a pro to do it although some home improvement skills might give you an edge. 

Getting in the house flipping business is a good way to diversify your portfolio and if done right it can provide you financial success in your golden years. VR Apartments shares a few considerations you should make before plunging into the business. 

1. Choosing the right house

You have to know which houses to pick. Your choice of house will determine the profitability of your business. There are several factors to consider when choosing the ideal property to flip. These include the neighborhood, nearby amenities, demographic, and school district. Put yourself in the shoes of a buyer and consider what gives the house value. 

The best pick should be an up-and-coming neighborhood in a safe street with low crime and is in a nice school district. This kind of house is attractive to professionals and young families, meaning chances of a successful flip are very high. 

2. Work to be done

The less work you have to do, the better especially since you are a senior citizen. A fixer-upper may be attractive for its low purchase price but it may prove to be very costly in the long run. Renovations can take a lot of time and cost you a lot of money. Every day spent repairing the house means increased billable hours and loan interest.

Avoid houses with foundational and structural issues. Instead choose properties that have a solid build, attractive layout, and character. You should transform the house through cosmetic updates and fixtures. If you have to flip a fixer-upper, you should get the right type of inspection done to give you an idea of the major components that need repair, how long the repairs will take, and how much it will cost. When pricing the major repairs like HVAC upgrades, electrical work, foundation problems, or issues with mold or asbestos, you should add 20% to your estimate     

3. Financing expenses

Starting a house-flipping business requires a sizable amount of start-up capital. If you do not have a huge sum stashed away, you will need a loan or an investor. Putting your life savings into a business is not a good idea so taking out a loan or getting an investor are the best ideas. Both have their advantages and drawbacks. 

An investor is a business partner who wants you to succeed but this gives you less freedom than you would have operating the business by yourself. A loan on the other hand comes with restrictions. For example, it won’t cover auction purchases which give you access to excellent houses for cheap. Loans also come with steep interest rates and the interest mounts the longer you take to flip a house. 

4. Managing payroll for employees and contractors

Since you can’t carry out all the renovations yourself, you will need to delegate duties to professionals. You should find reliable employees and contractors to work with. You will need landscapers, painters, plumbers, general contractors, among other professionals, and you should have an efficient way to manage payroll. Payroll software can help you streamline payments and free up your time to focus on readying your property for sale.  

5. Manage time and budget

To run a profitable fix-and-flip business, it is critical that you finish your projects on time and on budget. Before you begin a project, you should estimate the time each contractor should take on a renovation and how much it should cost. Make sure that the project is never at a standstill and that you don’t exceed the budget for any area of the building. 

Finally

While it may seem like an overwhelming undertaking in retirement, with the right planning, house flipping can be a rewarding venture.