Populated with relatively affordable homes, plenty of tourist attractions and some of the most prodigious peach farms in the US, the Palmetto state has also become a hot spot for property investors in recent years. 3 bedroom houses are the most common offering, which can require some creative thinking on behalf of the investor in order to truly transform the after repair value of the house.
Perhaps most important, investors are clearly making money flipping houses in South Carolina. The revenue per flip is higher than the US average, which could make it a good starting point for first time flippers that need some extra leeway with their renovation budget. Now let’s take a more detailed look at how to flip houses in South Carolina.
South Carolina House Flipping Stats
Median Purchase Price
Median Resale Price
Price Per Square Foot
South Carolina Population
Median Household Income
High School Graduation
Travel Time To Work
Best Cities for Flipping Houses In South Carolina
- North Charleston
- Mount Pleasant
- Rock Hill
Safest Areas In South Carolina
- Simpsonville – Safety Score: 90.98
- Fort Mill – Safety Score: 85.92
- Mauldin – Safety Score: 84.63
- Mount Pleasant – Safety Score: 84.37
- Bluffton – Safety Score: 82.93
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
The Basics Of Flipping Houses In South Carolina
- Find a property in South Carolina that is undervalued
- Source funding from a reputable lender
- Buy the property for a price that makes it possible to generate profit when it is resold
- Complete renovations that will increase the after repair value
- Find buyers for the property and sell it for a healthy profit margin
How To Find Houses To Flip In South Carolina
1. Use FlipScout By New Silver
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in South Carolina.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in South Carolina, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
South Carolina Housing Market Analysis
House Flippers Are Focusing On The Lower End Of the Market: The median home value in South Carolina ($204,830) is considerably more than the median resale value for house flips ($163,490). This suggests that investors are concentrating on the mid-to-low end of the property market, where it might be more common to find run down homes that are perfect for a flip. When figuring out how much to pay for a fix and flip property, always factor in the 70 percent rule.
The Revenue Per Flip Is Low: The average revenue per flip in the US is just over $60,000. In South Carolina, the revenue per flip drops down to $44,790. Whichever way you look at it, this isn’t a positive sign for fix and flip investors. The South Carolina revenue stats suggest that even if you find the suitable property in a good area, and complete valuable renovations, the final resale value will still be limited. Based on this, you need to stick very closely to your budget, and ensure the project doesn’t take longer than expected (this would further reduce your net profit).
Home Values Have Appreciated By 7.3%: According to Zillow, home values in South Carolina appreciated by 7.3% over the last year. Even though there was a slight dip in prices when covid-19 first took hold of the US, the real estate market has responded well to the pandemic.
In order to stimulate property purchases, interest rates have been dropped to historically low levels. This has made housing across the US significantly more affordable than it was previously. However, the supply of homes has yet to match the demand, resulting in a definitive increase in South Carolina house prices.
Homes In South Carolina Are More Affordable Than Average: The median home value in South Carolina is $204,830. This is considerably less than the median home value in the United States, which is approximately $266,222.
The reasonable cost of homes in South Carolina makes the market more accessible. You need less capital to get started, a condition which lends itself to first time flippers hoping to break into the property investing business.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.
If you’re committed to flipping houses in South Carolina, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit.
Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.