Flipping Houses In South Carolina: Is it a Viable Profession?

If you’re looking to expand your portfolio or it is your first time in real estate investment, flipping houses can be profitable. House flipping can be simply defined as purchasing a property at a low price, making any necessary repairs, and then reselling such a property for a higher price to make a profit. The idea is to “flip” the house in as little time as possible.

Although individuals, homebuyers in Upstate, SC, have made a fortune by buying and selling real estate. It is a risky investment that requires expertise and skill. House flipping is literally a business that has made people millionaires overnight. And this business has gained noticeable popularity recently due to its high potential for success.

Flipping Houses in South Carolina

Over the years, the housing market in South Carolina has been promising for investors, sellers, and buyers. The median home value in Upstate, SC, is $166,300. However, in the last year, 2020, South Carolina has experienced a 5.9% increase in home value and is even expected to rise another 2.7% in the next year.

Furthermore, the median listing price is $250,000, and the median sale price is around $179,000. Most homes spend an average of 81 days on the market. Also, about 9.5% of homes have negative equity, which is above the national average of 8.2%, and homes that have a price cut associated with them up to 14.1%.

Generally, there are many reasons to invest or buy in South Carolina real estate. It is currently affordable for most people to buy a home here, and rental demand is steadily increasing, which is great for investors. Moreover, the overall climate in South Carolina is very business-friendly. Close to 2000 international companies have chosen South Carolina to build branches or headquarter. Two of the largest employers in the state, Boeing and BMW, have attracted talented employees and other competitors, such as Volvo.

Moving forward, South Carolina is known to be a popular destination for retirees as a result of its mild climate and friendly culture. Therefore, home sellers and investors in the state have a great opportunity to sell at a decent price to a relatively steady stream of interested buyers.

Finally, remodeling and renovation costs in the area are relatively small when compared to other states, such as California. The average home remodeling costs are around $40,000 on average statewide.

How to Make a Profit When Flipping Houses in South Carolina

Like any real estate market, the South Carolina market is subject to change. This could be a result of the evolution of new circumstances. Novice house flippers will definitely need expert guidance when determining what the market is likely to do, how to time their purchase, what repair costs will be, and what they can expect to make in potential profit.

Below are things you should consider when flipping houses in South Carolina:

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Choose A Great Location

Never forget that real estate is all about location. If you get a house by flipping, there are several repairs you will have to make to ensure that it appeals to your ideal buyer, but there’s not much you can do about the neighborhood. It is in your best interest to choose a safe area. You can check statistics and registries for the area to see how the crime rate and determine the neighborhood’s relative safety from there. It is also essential to look for indications that an area is growing and that residents are happy there.

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Evaluate The Condition And Potential Repairs

Nothing washes away your profit margin faster than hefty repairs. This is why it is important that you purchase a home that is structurally sound. If you don’t have the opportunity to get the home inspected and you’re not well-versed in external signs of major issues, bring a knowledgeable person with you or learn about what to look for.

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Know How To Determine Market Value

You have to be able to know when you are getting a good deal and when you are not. If you don’t, you’ll have a hard time obtaining a profitable outcome. Also, it is essential to know what to expect when you want to sell the property you’re flipping. You will also need knowledge of market value in that area.

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Adhere Strictly To The 70% Rule

Before you make any calculations regarding your potential purchase, know what you can afford to invest and what you can afford to lose. To make life easier, you should apply the 70% rule to help narrow down how much you want to spend on your investment property.

The 70% rule states that you should not pay more than 70% of the after repair value of a house if the repair cost is costlier than that.

Consult with an Actual Home Buyer

If you are going into the house flipping business in South Carolina, you must be very careful. Not every property you see is available for flipping. Hence, you should consider working with a homebuyer that understands the business more than you do. Seek professional advice anytime you need one. You should not let anything restrict you from making huge profits in South Carolina house flipping. It is a worthy investment to go into.