I could never do house flipping. Can't drive a nail straight. Im getting by in retirement. I've downsized. I have enough. I refuse to knock myself out in retirement after working my whole life. What's the point?
Flip Properties as Retirement Hobby/Job?
- Thread starter LoneRanger
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That doesn't sound like something very safe to do during your retirement.
- Joined
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That doesn't sound like something very safe to do during your retirement. Of you have lots of money to play with sure, go ahead but don't put all your eggs in one basket.
Where I live they claim that the housing market will be going down because all the baby boomers are moving out and there will be too many larger homes for sale. The millennials don't like to pay for expensive homes and many have the mindset that a home is not a very good investment. I guess time will tell and the housing market is constantly changing. The more expensive homes around here are slow to sell even thought the economy is very strong here. It seems as though unless a home is constantly updated they are slow to sell. It's quite a cycle that's for sure. I have seen many people spend more money and downsize into something less attractive.
The learning curve is steep. Figure 5- 10 years before you start putting together a system right now you're just throwing darts at the board. If you're going to do it you must form a corporation as you will get sued from one of the workers. You must protect yourself.
I'm retired build 2 houses a year so I always have 4 working projects going as the permit process takes time. Took me years to put together and like anything else it is a system. You must have skin like alligator in the real estate game otherwise you will fail.
I'm retired build 2 houses a year so I always have 4 working projects going as the permit process takes time. Took me years to put together and like anything else it is a system. You must have skin like alligator in the real estate game otherwise you will fail.
I give you a lot of credit, seriously. I really don't want to work that hard anymore.
I don't recommend it.
I started with multifamily complexes and slowly raised rents until someone left and then remodeled that unit, and so forth.
I had economies of scale and did the landlord thing.
I did my own work at first and later hired people. Hard to do if you are not connected, but once you are even that will have its challenges.
Getting subcontractors in line can be like herding cats.
I moved on to repositioning commercial properties even though the CAP rates are better for multifamily.
Commercial leases have more teeth vs residential bread and butter type renters, who can bend the ear of a sympathetic judge at eviction time.
I would have hated to do all this work only to break even but, it happens.
You will need liquidity and grit. Stuff happens.
The key is to get to a point where you work because you want to, not because you have to.
I started with multifamily complexes and slowly raised rents until someone left and then remodeled that unit, and so forth.
I had economies of scale and did the landlord thing.
I did my own work at first and later hired people. Hard to do if you are not connected, but once you are even that will have its challenges.
Getting subcontractors in line can be like herding cats.
I moved on to repositioning commercial properties even though the CAP rates are better for multifamily.
Commercial leases have more teeth vs residential bread and butter type renters, who can bend the ear of a sympathetic judge at eviction time.
I would have hated to do all this work only to break even but, it happens.
You will need liquidity and grit. Stuff happens.
The key is to get to a point where you work because you want to, not because you have to.
I've bought and remodeled two homes. We lived in them for 2 years then sold. I walked with 38k on the first home and 169k on our second home. I took that money and paid off our education and cars. We bought out next home for almost cash and my wife stays home with our two children.
Doing the work yourself is exhausting. I'm 35, but don't think I'd do another and the market where we currently live as isn't was profitable was Chicago.
Doing the work yourself is exhausting. I'm 35, but don't think I'd do another and the market where we currently live as isn't was profitable was Chicago.
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Stay away.
Enjoy a stress free retirement and buy some dividend stocks to keep a steady cash flow coming in.
Any property can turn into an endless money pit and nightmare if you buy the wrong one.
Enjoy a stress free retirement and buy some dividend stocks to keep a steady cash flow coming in.
Any property can turn into an endless money pit and nightmare if you buy the wrong one.
Originally Posted by Aredeeem
I could never do house flipping. Can't drive a nail straight. Im getting by in retirement. I've downsized. I have enough. I refuse to knock myself out in retirement after working my whole life. What's the point?
Retirement, at least for me, does not mean you stop working/doing something. It just means you have a LOT more freedom to choose. You can take jobs/work on things that you enjoy. And if they are not enjoyable anymore just walk away.
I liked flipping the house I did and enjoy working with my hands. It does not pay as much as my regular job now but less stress and more free time were nice. So its something I may look into when I retire.
I could never do house flipping. Can't drive a nail straight. Im getting by in retirement. I've downsized. I have enough. I refuse to knock myself out in retirement after working my whole life. What's the point?
Retirement, at least for me, does not mean you stop working/doing something. It just means you have a LOT more freedom to choose. You can take jobs/work on things that you enjoy. And if they are not enjoyable anymore just walk away.
I liked flipping the house I did and enjoy working with my hands. It does not pay as much as my regular job now but less stress and more free time were nice. So its something I may look into when I retire.
Our society is becoming more a mobile one. Younger people do not put down roots like my generation (I am 56) did. The demographic trend is more and more are choosing to rent rather than buy. Take advantage of it. The trend is your friend. My rentals have had a few headaches along the way but no where near enough to make me regret buying my eight homes.
Quick, effective advice: buy the school district, and screen the applicants well.
Quick, effective advice: buy the school district, and screen the applicants well.
If I was young and could find someone to front me the money to start I would go for it. Worse case I go bankrupt, but as a young person there is plenty of time to move on to the next thing.
As has been suggested, there is a learning curve. A young person with no bills may be able to get through that curve and eventually build it into a profitable career. But as a retirement gig, I would advise against it.
As has been suggested, there is a learning curve. A young person with no bills may be able to get through that curve and eventually build it into a profitable career. But as a retirement gig, I would advise against it.
Originally Posted by Kestas
Another thought... Flipping houses is a way for contractors to even out their work when there are slow periods. Some auto repair shops are like that too. Every once in a while you'll see a number of cars for sale in front of these shops.
Exactly what a contractor is doing with an auction home on my street. He is working a massive project renovating and adding structures to a $3M property. He picked up an adjacent neglected 1960's home at auction for $150k (frozen pipes, failed septic, mold, leaks etc). He has the people working on larger project parking on lawn and keeps his equipment at his fixer upper.
It appears he has done a full gut at same time of property with the excess help he has on his larger project. The home interior is amazing. I asked and his end goal is rental or flip. I'd love it for my mum.
Another thought... Flipping houses is a way for contractors to even out their work when there are slow periods. Some auto repair shops are like that too. Every once in a while you'll see a number of cars for sale in front of these shops.
Exactly what a contractor is doing with an auction home on my street. He is working a massive project renovating and adding structures to a $3M property. He picked up an adjacent neglected 1960's home at auction for $150k (frozen pipes, failed septic, mold, leaks etc). He has the people working on larger project parking on lawn and keeps his equipment at his fixer upper.
It appears he has done a full gut at same time of property with the excess help he has on his larger project. The home interior is amazing. I asked and his end goal is rental or flip. I'd love it for my mum.
Originally Posted by gfh77665
My rentals have had a few headaches along the way but no where near enough to make me regret buying my eight homes.
I agree. I have 38 total units, and while there have been a few headaches in the past, there will also always be a supply of people who choose (or have no choice but) to rent. Another option is to allow a rental management company to handle all of the day to day grunt work. They do the screenings, they do any evictions, they handle the midnight calls, they schedule repairs, etc.
In this area it costs $80/month per unit, but it's well worth it. A ballpark figure here is that one months' rent each year goes to taxes, one month each year to repairs and insurance, and another 1 month each year to the management company. The other 9 months rent on each unit are all mine. At an average of around $900/month each for each unit that isn't too shabby. I don't think I could do that well with so little work by flipping houses, but it's easy as a landlord.
My rentals have had a few headaches along the way but no where near enough to make me regret buying my eight homes.
I agree. I have 38 total units, and while there have been a few headaches in the past, there will also always be a supply of people who choose (or have no choice but) to rent. Another option is to allow a rental management company to handle all of the day to day grunt work. They do the screenings, they do any evictions, they handle the midnight calls, they schedule repairs, etc.
In this area it costs $80/month per unit, but it's well worth it. A ballpark figure here is that one months' rent each year goes to taxes, one month each year to repairs and insurance, and another 1 month each year to the management company. The other 9 months rent on each unit are all mine. At an average of around $900/month each for each unit that isn't too shabby. I don't think I could do that well with so little work by flipping houses, but it's easy as a landlord.
38 x $900 =
Originally Posted by Mr Nice
38 x $900 =
38 X $900 X 9 months = $XXXXXXX/year
38 x $900 =
38 X $900 X 9 months = $XXXXXXX/year
Originally Posted by Wolf359
Originally Posted by pandus13
Originally Posted by Mr Nice
38 x $900 =
38 X $900 X 9 months = $XXXXXXX/year
Don't forget to minus taxes, water/sewer, insurance, mortgages, repairs, utilities, etc.
In the thread above, Fawteen states that the 38 x $900 x 9 months = $307,800 is the annual take home profit after expenses are deducted. He did state in another retirement thread that he "worked his tail off 35 years" to arrive at his current place in life. I imagine someone could turn house flipping into a lucrative income also, but probably not overnight, just like Fawteen did not.
Originally Posted by pandus13
Originally Posted by Mr Nice
38 x $900 =
38 X $900 X 9 months = $XXXXXXX/year
Don't forget to minus taxes, water/sewer, insurance, mortgages, repairs, utilities, etc.
In the thread above, Fawteen states that the 38 x $900 x 9 months = $307,800 is the annual take home profit after expenses are deducted. He did state in another retirement thread that he "worked his tail off 35 years" to arrive at his current place in life. I imagine someone could turn house flipping into a lucrative income also, but probably not overnight, just like Fawteen did not.
Originally Posted by doitmyself
Originally Posted by Wolf359
Originally Posted by pandus13
Originally Posted by Mr Nice
38 x $900 =
38 X $900 X 9 months = $XXXXXXX/year
Don't forget to minus taxes, water/sewer, insurance, mortgages, repairs, utilities, etc.
In the thread above, Fawteen states that the 38 x $900 x 9 months = $307,800 is the annual take home profit after expenses are deducted. He did state in another retirement thread that he "worked his tail off 35 years" to arrive at his current place in life. I imagine someone could turn house flipping into a lucrative income also, but probably not overnight, just like Fawteen did not.
Yeah, there's some additional cash flow and appreciation that comes with time. Mortgages get paid off, prices increase, when interest rates drop you can refi for better returns, rents go up etc.
Originally Posted by Wolf359
Originally Posted by pandus13
Originally Posted by Mr Nice
38 x $900 =
38 X $900 X 9 months = $XXXXXXX/year
Don't forget to minus taxes, water/sewer, insurance, mortgages, repairs, utilities, etc.
In the thread above, Fawteen states that the 38 x $900 x 9 months = $307,800 is the annual take home profit after expenses are deducted. He did state in another retirement thread that he "worked his tail off 35 years" to arrive at his current place in life. I imagine someone could turn house flipping into a lucrative income also, but probably not overnight, just like Fawteen did not.
Yeah, there's some additional cash flow and appreciation that comes with time. Mortgages get paid off, prices increase, when interest rates drop you can refi for better returns, rents go up etc.
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