Interested in flipping houses

[Erin Shepard]

Hello! I am new to BP but so far have found plenty of great advice. I just moved to Charleston, SC a few months ago and currently work for a big 4 CPA firm.  It has always been my dream and a passion of mine to work in interior design and flip houses.  My boyfriend's family owns a small technology contracting company and do things including home theaters, access control, lighting control, fire alarms etc but there also is a real estate branch of his company and we are looking to potentially flip houses in the Charleston area.  It seems that listings are scarce but not impossible.  We are looking to incorporate some of their technology and designs into the houses we buy.  If anyone has any advice on house flipping here in the Charleston area that is willing to share it would be greatly appreciated! Thank you!

[Cornelius Garland]

@Erin Shepard Hey Erin, and welcome to BP! I'm an investor in Charleston and have been active for about 2 years. Charleston is pretty competitive, but deals can be found. We wholesale and get a lot of off-market properties under contract. Due to Charleston being the "number 1 city in the country" for a few years now, locals are asking for crazy prices for their homes. If you're looking downtown (29403 & 29401), almost any MLS deal will be at full retail value, even if the property is in poor condition. For instance, we sold one last may on Ashley Ave for 200k and it needed significant repair work. It took us a while to sell because our seller wanted 300k for it! For 300k you can get a super nice, brand-new property in Summerville (where I live) or even in Mount P.

I would first specify the price you want to pay for the property and then that'll determine where you can buy. If your budget is around $20-50k on the purchase (not including repairs), then North Charleston is likely your best choice. However, there are a lot of undesirable areas here. We do a lot deals in in North Charleston, though. If your price range is $60-100k, I would focus on Goose Creek. Over the last 6 months, there were roughly 54 cash sales here. This is a hot spot right now, and our most recent deal we closed last week was in this area. Most of the ones in Goose Creek were built around 1960-1980, and some recent developments have popped up. It's a nice area. If your budget is 100k-200k, then Summerville is probably your best bet. Anything over 200k will get you a wholesale deal downtown or Mount Pleasant. But like I previously indicated, competition is crazy downtown and deals rarely make it on the MLS. If they do, then the price is too high. People downtown get called all the time by realtors and investors so they know a lot of people are interested in their homes. It gives the homeowner a lot of leverage. Also, you may find deals in the islands (James or Johns). However, not a lot of retail buyers purchase over there. So while you may find a great deal, keep in mind it'll probably take longer to sell.

Essentially, locating the deal is the hardest part. I visit the foreclosure auctions frequently to build our buyers list and there are dozens of buyers competing over overpriced homes. Anything that pops up on the MLS is either too high or gets snagged up quickly. Moreover, a lot of the abandoned or vacant properties are concentrated in poor locations so these are typically held onto as rentals, not rehabbed by investors. The chances of finding a poor home in a nicer neighborhood are low because almost every neighborhood has an HOA around here. Even rough neighborhoods have HOAs, which is crazy. On the outside, you can't tell the properties are in rough shape so it makes driving for dollars difficult. You just need to consistently market to property owners and possibly get connected with a buyer's agent that represent buyers who purchase foreclosures. They're the most investor-friendly kind of realtor. Have you suggested buying a rental? Your buying criteria is less-stringent, and you don't necessarily need to worry about buying it at a cash price. Although, you will need to ensure the numbers work so you can get a good ROI. Feel free to ask me any questions. I have a good pulse on the market and absolutely love working here in Charleston. Everyday is a new adventure and presents new opportunities!