Your Guide to Flipping Houses in the North Carolina Real Estate Market

Flipping houses is a lucrative venture for many real estate investors across the United States, and the North Carolina real estate market is no exception.

• In 2022, 9.2% of home sales across North Carolina involved flipping—a 7% decrease from the previous quarter but a 15% increase compared to last year.
• Statewide, 4,457 flips were completed during the third quarter, with a sale price averaging $300,000. This yielded an average profit margin of $60,000, equating to 25% of the purchase price.
• The typical time to flip a house in the state was approximately 159 days.

Whether you’re a house flipper targeting bustling urban centers like Raleigh and Charlotte or quieter suburban areas, understanding the nuances of flipping houses in this state is essential for success. Let’s look at what you need to know.

The North Carolina real estate market

North Carolina’s real estate market has grown consistently over the past decade.

Rising property values are due to factors such as population increases, economic expansion, and the influx of major industries.

Here’s why this market is attractive for house flipping:

• Growing population: Cities like Charlotte, Raleigh, and Durham are among the fastest-growing in the country, driving demand for housing.
• Diverse property options: From historic homes in Asheville to modern developments in the Research Triangle, investors have a wide range of properties to choose from.
• Affordable entry points: Compared to markets in states like California or New York, North Carolina offers lower property prices, making achieving a profitable return on investment easier.

These factors make North Carolina attractive for those looking to capitalize on the trend of flipping houses.

Key steps to successfully flip houses in North Carolina

Flipping houses involves purchasing a property, making strategic renovations, and selling it for a profit.

While this process may sound straightforward, it requires careful planning and execution.

Below are the essential steps to help you navigate this journey successfully.

Research the market

It’s important to conduct thorough research before diving into the North Carolina real estate market.

Identify neighborhoods experiencing growth, have high buyer demand, and offer a good balance of affordability and profitability.

For instance:

• Hot markets: Areas like Charlotte’s NoDa district or Raleigh’s Five Points are popular among young professionals and families.
• Emerging suburbs: Towns like Apex, Holly Springs, and Concord offer the potential for high returns due to their growing appeal and affordability.

Set a realistic budget

Flipping houses involves multiple expenses, from purchasing the property to completing renovations and covering closing costs.

Your budget should include:

• Purchase price: Stick to properties that allow for a profit margin after renovations.
• Renovation costs: Obtain accurate estimates for labor and materials.
• Carrying costs: Account for utilities, insurance, and property taxes during the renovation period.
• Unexpected expenses: Set aside at least 10-15% of your budget for contingencies.

Tools like a house-flipping calculator can help determine your maximum allowable offer (MAO) to ensure profitability.

Secure financing

For many investors, securing financing is a critical part of the process.

Hard money loans are a popular option for flipping houses because they provide fast funding and are tailored to short-term projects.

Lenders such as Park Place Finance specialize in offering hard money loans for real estate investors, including those targeting the North Carolina real estate market.

These loans are asset-based, meaning they consider the property’s value rather than your credit score.

With quick approval times and flexible terms, hard money loans are ideal for seizing lucrative opportunities in a competitive market.

Choose the right property

When selecting a property to flip, look for undervalued but structurally sound homes.

Avoid properties requiring extensive repairs unless you have significant experience and a reliable contractor.

Focus on features that appeal to buyers, such as:

• Location near good schools, shopping centers, or public transportation
• Properties with outdated interiors that can be modernized at a reasonable cost
• Homes in neighborhoods with high demand and rising property values

Plan renovations strategically

To maximize profits, focus on renovations with the highest return on investment (ROI).

In the North Carolina real estate market, popular upgrades include:

• Kitchens: Modern appliances, new countertops, and updated cabinetry can significantly boost appeal.
• Bathrooms: Renovating outdated bathrooms with contemporary fixtures and finishes is smart.
• Curb appeal: Strong first impressions can be made with strategic landscaping, a fresh coat of paint, and a well-maintained exterior.
• Energy-efficient features: North Carolina buyers often appreciate eco-friendly upgrades like solar panels or new windows.
• Neutral design: Stick to design choices that align with the preferences of your target market and avoid overspending.

Work with a professional team

Partnering with experienced professionals can make the house-flipping process smoother and more efficient.

Consider working with:

• Realtors: A local real estate agent can help you identify promising properties and market them effectively.
• Contractors: Reliable contractors ensure renovations are completed on time and within budget.
• Inspectors: Hiring an inspector before purchasing a property can help avoid costly surprises.

Working with a network of trusted professionals in the North Carolina real estate market will streamline your flipping timeline and boost your chances of success.

Market and sell the property

Once renovations are complete, the next step is to sell the property quickly and at a profitable price.

To showcase your work, use high-quality photos, virtual tours, and compelling descriptions. You can also host open houses and leverage online platforms like Zillow or Realtor.com to attract potential buyers.

In North Carolina, spring and summer are typically the best times to list properties, as the market is more active then.

Flipping homes in North Carolina: The wrap-up

Flipping houses in the North Carolina real estate market offers significant profit potential, but success requires careful planning, research, and execution.

North Carolina’s diverse and growing market provides ample opportunities for both seasoned and beginner investors to achieve their real estate goals.

With the right strategy and support from professionals like Park Place Finance, you can make your house-flipping ventures successful in this dynamic region.

Ready to see what kind of financing is available for your fix-and-flip project?

Apply with Park Place Finance online, or call (866) 407-1599 to speak directly with an account executive.