If you are looking for a comprehensive guide to start flipping houses in the state of South Carolina, you’ve come to the right place.
One of the easiest methods to begin investing in real estate is to flip houses. It might be a profitable business venture. However, because it is a high-risk investment, you need to consider a lot of variables.
But don’t worry, I’m here to assist you with your research and decisions. The market research, appraisal, and procedure for flipping houses in South Carolina are all broken down in this comprehensive book.
Flipping Houses in South Carolina
The housing market in South Carolina is one of the hottest in the country. It’s a once-in-a-lifetime income opportunity for house flippers. Despite the low housing market valuation, investors who pick the right properties and flip houses in South Carolina earn a substantial profit.
Every investment, including real estate, is very localized, and South Carolina is no different. Paying attention to current market events and understanding how to respond quickly can help you recognize a profit or loss. To grasp the trends in these local markets and locate investment opportunities, you should always deal with a local expert real estate agent. Their complete knowledge of the ins and outs of these specialized housing markets can help you at every step of the way.
Analyzing the South Carolina Housing Market in 2022
South Carolina is the 14th most affordable housing market in the US. South Carolina’s average house value is at $280,000 as of April 2022, which is much less than the national average home value of $344,000 Furthermore, house values in South Carolina climbed by a little more than 8.04 percent in 2021, and are expected to rise by a stunning 26% in 2022. These prices, on the other hand, vary even within the state, indicating how regional and localized property markets are.
This trend in the South Carolina property market has attracted real estate investors from all across the country. The demand for South Carolina houses now outnumbers the supply. In South Carolina’s housing market, this has resulted in a strong seller’s market. The reason for the inflow of investors into South Carolina’s real estate market is simple. The growing population and improved job and education sectors are two of the main reasons for this. South Carolina has an 87.1 percent high school graduation rate and a typical family income of roughly $51,500.
As of June 2022, the economy of South Carolina has shown considerable signs of growth. Although the unemployment rate has decreased, payroll employment has increased. The housing market’s indicators were mixed but largely positive. Furthermore, South Carolina gained 7,900 jobs in April(0.4%). The majority of jobs in the construction business have been eliminated (2,100 jobs). Similarly, the banking and financial industry procured the bulk of staff (3,200 jobs). Furthermore, since April 2021, total payroll employment has increased by 66,400 employees (3.1%).
In addition, South Carolina’s extremely low housing costs make the market more accessible to first-time real estate investors. You’ll need less money to get started, which implies there will be more newbies in the future and therefore greater competition.
How to know if the house in South Carolina is a good investment?
After learning about South Carolina’s broad housing market and economy, you’ll probably want to check into a more specific location and community to identify potential houses. Keep in mind that not every local home market offers the same kind of investing options.
In general, determining whether or not a property is a suitable investment is based on a number of variables. As a general guideline, avoid local marketplaces with a lot of inventory and listings that have been active for a long time while you’re just getting started. Houses in Columbia, on average, sell after 42 days on the market. This signifies that it is a no-go if the property in the region is still operating after 42-50 days.
Another indicator that a home in South Carolina is a smart investment is if the price is lower than the local market average. One of the easiest methods to spot possible value is to look for properties that are much less expensive than previous sales in the area. Keep in mind that the less costly residences will require far more modifications than the more expensive ones.
How much should I pay for a house in South Carolina?
It’s usually a good idea to keep to the 70% rule when deciding how much to spend on a home in South Carolina. According to this rule, you should never spend more than 70% of the house’s after-repair worth, less repair and renovation expenses. Let’s say you buy a house in South Carolina for $30,000 and want to spend $30,000 on repairs and remodeling. Keep in mind that upgrades raise the property’s market value. Let’s say your house is worth $350,000 after repairs.
According to the 70 percent guideline, you should spend no more than 70% of the after-repair value minus repair expenditures on this property. When you add up the numbers, it only amounts to $215,000.
It’s critical to keep in mind that the 70% rule is discretionary. It’s only an estimate of the house’s genuine worth. This rule aims to create a profit margin that is substantial enough to pay all other costs while flipping houses in South Carolina while still leaving you with a good profit margin.
Do you need a real estate license to flip houses in South Carolina?
To flip houses in South Carolina, you don’t need a real estate license. Having said that, acquiring both a realtor and a contractor license is typically a smart idea if you want to start flipping houses in South Carolina full-time.
It’s fine if you don’t want to deal with the difficulties of obtaining a realtor or contractor license in South Carolina. In this case, I strongly suggest you choose an experienced realtor and contractor with whom you can have a good working connection.
Finally, locating a reliable contractor or repairman might be difficult if you are new to South Carolina. Furthermore, zoning limits and rules differ by city, and market trends change often. Working with a reputable agent or contractor might help you anticipate potential issues.
How to start flipping houses in South Carolina and make a profit?
Once you’ve done extensive research on the South Carolina property market and are certain that the house is a sound investment, you’re ready to start your home flipping journey in South Carolina. To start flipping houses in South Carolina and profit handsomely from this sort of real estate investment, follow these six steps.
1. Create a Budget and Secure Financing
The first thing you should consider when flipping properties in South Carolina is your financial situation. It’s typically a good idea to perform the arithmetic before looking at potential qualities.
You should already know how much money you have if you have cash on hand. By paying cash for your South Carolina house flips, you may avoid financing charges, mortgage payments, and any other closing expenses or fees. As a consequence, while flipping houses in South Carolina, if you have cash, you should always use it.
Using a loan or other kinds of financing to acquire and restore a property may lower your potential returns dramatically. You’ll continue making mortgage payments until the home is sold if you took out a $300,000 loan to buy a house in South Carolina. Even a 5% down payment on a home might cost around $15,000 to purchase. Furthermore, you’ll need to invest an extra $45,000 in addition to the $30,000 for repairs and improvements.
Unfortunately, repairs and upgrades take time. As a result, you may end up paying your mortgage for a longer length of time, perhaps losing out on a significant profit margin. Furthermore, when property taxes, construction permits, utilities, marketing costs, closing fees, home insurance, realtor commissions, and other costs associated with flipping houses in South Carolina are taken into account, you may not be able to earn any money at all.
As a consequence, having cash may help you save money on all of these things while also allowing you to keep as much of your earnings as possible.
But don’t be concerned if you don’t have any cash. There are still a few alternative ways to support your house-flipping business on a shoestring budget.
2. Research the Cities and Neighborhoods
You may evaluate the neighborhood’s desirability once you’ve discovered the properties that are listed below market value and taken into account other indicators such as active days on the market. When flipping properties in South Carolina, the quality of the area is a key factor. Although the listing and sales price are good indications of the neighborhood’s worth, other quantitative criteria such as the quality of education, entertainment, parks and recreations, and the neighborhood’s shopping experience should also be considered.
Existing housing stock in older communities in South Carolina, as well as a burgeoning metro area, may benefit from rehabilitation and repair. You may make a good living by flipping houses in South Carolina. However, you must learn to recognize the correct possibilities.
Here is a list of the 4 best cities to flip houses in South Carolina for 2022.
Flipping Houses in Charleston, SC
Charleston is the biggest city in the state of South Carolina. This city is composed of 58 neighborhoods and offers multiple affordable duplexes, townhouses, and affordable multi-family homes. As of April 2022, the median listing home price in Charleston is just $477,500, trending up 17.9% year-over-year. The median listing home price per square foot is $286.
The city offers 53 public schools rated good and higher by GreatSchools and 17 private and charter schools. Charleston also offers hundreds of grocery stores, restaurants, and cafes. There are also a plethora of beautiful parks and gyms for a healthier lifestyle.
Out of the 58 neighborhoods in Charleston, Beresford Hall is the most expensive one with a median home price of $2,600,000. On the other hand, Shadow Moss is the most affordable neighborhood, with a median listing home price of just around $350,000. There are also some other great neighborhoods like Carolina Bay, East Side, and Radcliffeborough.
Flipping Houses in Columbia, SC
Columbia is the capital city of South Carolina. It is composed of 81 neighborhoods and offers multiple affordable duplexes, townhouses, and affordable multi-family homes. As of April 2022, the median listing home price in Columbia is $225,000, trending up 15.4% year-over-year. The median listing home price per square foot is $128. The median home sold price was $231,500. The sale to list price ratio is 103.39%, which confirms a strong seller’s market.
The city offers 75 public schools rated good and higher by GreatSchools and 19 private and charter schools. Columbia also offers hundreds of grocery stores, restaurants, and cafes. There are also a plethora of beautiful parks and gyms for a healthier lifestyle.
On Average, houses in Columbia sell after 42 days in the market. Out of the 81 neighborhoods in Columbia, Elmwood Park is the most expensive one with a median home price of $539,700. Conversely, Skyland is the most affordable neighborhood, with a median listing home price of just around $70,000. There are also some other great neighborhoods like South Kilbourne, Shandon, and Earlewood.
Flipping Houses in Myrtle Beach, SC
Myrtle Beach is a city in South Carolina that consists of 4 neighborhoods and offers multiple affordable duplexes, triplexes, and affordable multi-family homes. As of April 2022, the median listing home price in Myrtle Beach is $289,000, trending up 31.4% year-over-year. The median listing home price per square foot is $218. The median home sold price was $250,000. The sale to list price ratio is 100%, which confirms a strong seller’s market.
On Average, houses in Myrtle Beach sell after 46 days in the market. The city offers 7 public schools rated good and higher by GreatSchools and 5 private and charter schools. Myrtle Beach also offers hundreds of grocery stores, restaurants, and cafes. There are also a plethora of beautiful parks and gyms for a healthier lifestyle.
Of the 4 neighborhoods in Myrtle Beach, Grande Dunes is the most expensive with a median home price of $1,200,000. On the other hand, South Myrtle Beach is the most affordable neighborhood, with a median listing home price of just around $153,000. There are also some other great neighborhoods like The Sea Gate Village and The Dunes.
Flipping Houses in Greenville, SC
Greenville is the capital city of South Carolina and is composed of 24 neighborhoods and offers multiple affordable duplexes, triplexes, and affordable multi-family homes. As of April 2022, the median listing home price in Greenville is $350,000, trending up 18.7% year-over-year. The median listing home price per square foot is $174. The median home sold price was $322,500. The sale to list price ratio is 100.04%, which confirms a strong seller’s market.
On Average, houses in Greenville sell after 41 days in the market. The city offers 34 public schools rated good and higher by GreatSchools and 17 private and charter schools. Greenville also offers hundreds of grocery stores, restaurants, and cafes. There are also a plethora of beautiful parks and gyms for a healthier lifestyle.
Out of the 24 neighborhoods in Greenville, Mcbee Avenue Area is the most expensive one with a median home price of $925,000. On the other hand, Greenville Community College is the most affordable neighborhood, with a median listing home price of just around $190,000. There are also some other great neighborhoods like Pleasant Valley, Overbook Historic District, and Hollingsworth Park.
3. Assemble your team
Whether you want to flip houses full-time or part-time in South Carolina, you’ll need a team of people to make each flip a success. You’ll very certainly need the help of a real estate lawyer, a lender, a real estate agent, a general contractor, a few workers, and an accountant.
Furthermore, if you want to make home flipping a regular part of your investment strategy, working with a trusted team rather than a new specialist for each job is ideal.
4. Select and Purchase your South Carolina House
After you’ve sorted out your finances and established whether or not it’s a good investment, it’s finally time to buy your home in South Carolina. Another factor to consider when buying a home is that houses that require more maintenance and upkeep are sometimes less expensive to purchase. As a result, they will take longer to resell.
Houses that are in good condition and do not require extensive repairs and changes, on the other hand, are significantly more expensive. Even if you pay more money upfront, you will save a lot of money in the long term and will not have to worry about home renovations.
As a result, while buying a home in South Carolina, strive to strike a compromise between these concerns. Choose a home that best fits your abilities, money, and timeline.
5. Repair and Renovate the House
Consider how much money the house will need to spend on repairs and changes, as well as how long they will take. Determine which improvements will add the greatest value and if they will appeal to potential purchasers. For homeowners who wish to escape the hot and humid South Carolina summers and frigid South Carolina winters, adding air conditioning and energy-efficient renovations to their property may quickly boost its value.
Furthermore, power washing the outside, painting the house, replacing a leaking faucet, reglazing and caulking bathtubs, and cleaning the floors are all minor but necessary tasks that will speed up the sale of your home.
6. Resell the Renovated South Carolina House for a Profit
Once you’ve done repairing and restoring the property, it’s time to put it back on the market. In South Carolina, you have two alternatives for reselling your house. The first option is to sell for sale by the owner (FSBO), while the second option is to sell with the help of a real estate agent.
One of the many benefits of selling your house without the assistance of a real estate agent is that you will save money on commissions. Even if you sell your South Carolina home on your own, you must still pay a fee to the buyer’s agent (3 percent ). If you want to sell your house quickly, you’ll need to be ready to barter like a pro and fill out all of the paperwork correctly.
You may always employ a professional real estate agent if you don’t want to deal with the trouble of selling the property yourself. Contract preparation, discussions, signing, and closing will all be streamlined. You will, however, have to pay them a 3% commission for their services.
How much money do house flippers make in South Carolina?
The average revenue per flip in the US is $60,000, while in South Carolina it’s just around $45,000. This means the average revenue per flip in South Carolina is $15,000 less than the national average. I mean it makes sense. Affordable housing and improving quality of life attract a lot of real estate investors in this state which ultimately leads to more competition and thus lower revenue per flip.
Furthermore, it is also important to understand that the revenue per flip is not the net profit. You will also need to allocate some money for repair and renovations. There may be a wide range of repairs necessary depending on the current state of the home, but if you spend $20,000 fixing up the home. Once you deduct all other costs and charges, you will be left with a net profit of around 10,000 to $15,000.
Thus, it is safe to assume that on average you can make at least $10,000 by flipping a single house in South Carolina. Furthermore, an average real estate investor flips around 4-5 houses per year. That means you can expect to make around $50,000 per year flipping houses in South Carolina full-time.
Overall, flipping houses in South Carolina is a great way to get started in real estate investment. South Carolina is rapidly developing and has plenty to offer inhabitants of the Palmetto State since it is one of the most profitable states for flipping properties. In addition, finding profitable flips in South Carolina requires a combination of your talents, knowledge, and luck. Once you’ve located a good deal on a house in South Carolina, be sure to execute a well-thought-out strategy, refurbish the property accordingly, and sell it to a high-end buyer.