North Carolina offers sweeping views of mountains and borders the ocean, so it’s no wonder you’re thinking about flipping houses in this area. It’s quickly becoming one of the most popular states to move to.
You should approach this hot housing market with caution, but if you do the right things, chances are you’ll be successful with your house flip.
Learn about flipping houses in North Carolina, general trends, how to maximize your profits, and reduce your risk before signing the deal on your first house-flipping project below.
- Why Should You Consider Flipping Houses in North Carolina?
- Is Flipping Houses in North Carolina Profitable?
- Best 5 Cities to Flip Houses in North Carolina
- Flipping Houses in North Carolina in 8 Steps
- How Much Does It Cost To Flip Houses in North Carolina?
- Is the Current Housing Market Good in North Carolina?
- Do You Need a License to Flip Houses in North Carolina?
- Other States to Look At for Profitable House Flipping
- Wrapping Up
Why Should You Consider Flipping Houses in North Carolina?
Real estate investors are flocking to North Carolina thanks to its healthy population growth, increased inventory, and strong economic conditions.
The market has several fantastic forecasts for the future.
Population Growth Increases Demand
North Carolina’s population of 10.7 million people is consistently rising each year. It’s the third most popular state that people are moving to and one of only four states seeing over 100,000 people migrating each year.
Experts predict that homes will continue to increase as more people move to North Carolina. You can feel confident flipping, as there will be many buyers on the market.
Inventory And Time On Market Are Up
There are 16% more homes on the market in 2023 than the previous year. Having more options to consider for your project helps guarantee you find the right property.
Houses are on the market for an average of 36 days now, ten more than last year. While this may not feel like a good thing, the number is still less than the nation’s average. The market is still hot, it’s just cooled down slightly this year, making it easier to enter as a buyer.
Increased inventory and time on the market reduce the stress of needing to buy homes before you’re ready.
North Carolina has the second-best economic outlook forecast in the nation, as employment and wages are reaching all-time highs.
Cities in North Carolina, like Raleigh and Charlotte, are technology and science research hot spots. More higher-paid, educated people are moving here and bringing money with them as these job markets grow.
This will increase the demand for nicer homes with higher prices.
Is Flipping Houses in North Carolina Profitable?
Yes, flipping homes in North Carolina is profitable, and it’s a great time to buy.
North Carolina’s housing market is expected to see increased home prices, lower demand, and increased supply. With 2022 being a record-breaking year, the forecasted decrease in demand is nothing to worry too much about. It will remain high compared to the national average.
The increased supply can be a good thing for you as a buyer. You will have more options to choose from to find the best project.
Although the prices may not dip low, it’s a good sign of the housing market strength. This should give you confidence in your property purchase. House prices are expected to continue to rise across the state, especially in metropolitan areas.
Best 5 Cities to Flip Houses in North Carolina
Greenville has strong economic growth as more people are moving here with higher wages. Homes are selling for significantly more each year as this demand increases.
There are fewer homes available on the market than in previous years, so it may be hard to find the right property for your project. If you do, though, you can trust the market to remain stable to lower your risk of investment.
Most homes in this city were built around fifty years ago. You’ll find plenty of older homes available on the market for lower prices. It’s a great selection for home flippers.
- Median property price: $227,093
- Year-over-year property value growth: 7.6%
- Year-over-year population growth: 1.64%
Winston-Salem has low home values compared to the rest of North Carolina. As prices increase elsewhere, it’s forecast that people will begin looking at Winston-Salem as a cheaper alternative.
It’s become one of the top areas for house flipping, where 12.9% of home sales are flips. While this popularity brings competition when purchasing a house, it can also provide a helpful community once you begin your project if you’re new to house flipping.
Winston-Salem also has one of the highest foreclosure rates in the country. This offers a constant influx of affordable homes that are ripe for house flippers to choose from.
- Median property price: $243,220
- Year-over-year property value growth: 6.5%
- Year-over-year population growth: 1.7%
Belmont is in Gaston County, which was the county with the greatest number of house flips in 2022, according to Attom Data. A total of 16% of homes sold were flipped. There’s a strong community of house flippers here that may provide good support if you’re new.
Its proximity to Charlotte helps to ensure a low-risk investment. As Charlotte grows, these nearby suburbs will see increased demand and housing prices.
There’s a wide variety of houses on the market in Belmont. You’ll be able to find homes that are less than $200,000 if you’re looking for an affordable project. There are also larger homes with higher price tags that are ripe for house flippers.
- Median property price: $395,316
- Year-over-year property value growth: 1.2%
- Year-over-year population growth: 1.06%
As the largest city in North Carolina, Charlotte has seen steady population growth in the past two decades and is forecast to continue. With more people moving, more homes are needed.
Across the city, there is a great variety of older homes on the market. From smaller homes under $200,000 to larger homes that reach over $1 million, any size of a house flipping project is possible. More homes are on the market now than last year, so it’s a good time to look.
Due to the dip in the market, homes are selling for 3% under their asking price, making it a great time to buy. Experts predict a strong housing market forecast for Charlotte ahead.
The most affordable neighborhoods in Charlotte are Lowell, Rock Hill, and Ballantyne West. Homes in these neighborhoods average less than $350,000, making them great low priced.
- Median property price: $385,000
- Year-over-year property value growth: 6.5%
- Year-over-year population growth: 2.86%
Although Raleigh remains in a seller’s market, the homes on the market are sitting for longer and closing under the asking price on average. This makes it a great time to look for a property.
With more homes available on the market, sellers may be more open to negotiation. That being said, the average time a home is on the market is 36 days, which is still relatively low. It’s a sign of resilience in the housing market and can help you feel safe investing.
Neighborhoods within Raleigh with the lowest median home values are Clayton, Oxford, and Louisburg. Each of these neighborhoods lists homes under $250,000, with some even as low as $100,000.
- Median property price: $415,000
- Year-over-year property value growth: 7.5%
- Year-over-year population growth: 2.84%
Flipping Houses in North Carolina in 8 Steps
Step 1: Look For Properties
To begin your process, you need to find the right property for your project. Start by picking the cities or areas that you’re interested in. Roam listing multiple listing service (MLS) sites in North Carolina.
Some free ones to get you started are:
Consider working with a realtor directly because many of them have access to more sites and properties that you would otherwise not see. Using one of the 16 association board offices that are part of the North Carolina Regional MLS is a great place to start looking,
Step 2: Research Your Property
Once you find a property you believe in, you’ll need to research everything about it. Risk assessment is key in buying properties to flip. Many of these homes are cheaper because they need fix-ups, which adds an element of risk that you don’t know or see all of the problems.
Ensure you ask the realtor or owners about:
- History of home
- Past renovations
- Precious companies that did renovations
- Roof condition
- Plumbing conditions
- Appliance history
- Past insurance claims
Step 3: Plan Your Project & Forecast Profits
You’ll want a strong and conservative forecast of your after-repair value to estimate your profit potential.
Plan what you want to fix and how much it will cost. It’s best to use a contractor for this part to ensure accurate and conservative numbers. Understand the renovation costs are likely to go over your estimates, as issues tend to arise frequently in these projects.
You can use your predictions in the 70 percent rule for house flipping to calculate your maximum purchase price. This is an important number to get as accurate as possible if you want to reduce your risk of loss.
Step 4: Seek Funding
Buying a home that needs work requires money. If you’re paying cash upfront, then it’s easy.
If you need a loan, ensure you research a reputable lender.
Hard money lenders may be required to work with, as traditional lenders find house flipping projects too risky. These private money lenders sometimes offer questionable contracts for their hard money loans, so ensure you know what you’re agreeing to.
Step 5: Make An Offer
Make your offer. Ensure you don’t get caught up in a bidding war that results in going over your maximum price.
It’s important to stay disciplined and conservative throughout this process so that you’re prepared for any issues that arise.
Step 6: Start The Flip
Start house flipping! Start by tackling the largest projects you planned, if possible. This leaves financial room in case issues arise that the most important things get done.
Your goal is to maximize the profit you make, so ask yourself what adds the most value to this home. The top value adds that are trending in North Carolina are:
- Fenced backyard
- Fresh paint
- Laundry closet
- New kitchen
- Screened patio
- White cabinetry
- 1 story home
- Natural gas utilities
A great way to save on rehab costs is to do the work yourself. It’s aptly named sweat equity in house flipping. With contractors costing anywhere from $20 to $120 an hour, you’ll save yourself plenty of money if you can do as much as possible yourself.
Step 7: Put On Market
Time to put the renovated home on the market. To do this, calculate an appropriate market value. It may help to work with a realtor to ensure you’re not over or underestimating the value of the home.
Realtors can also help you market the home better, listing it in more places and getting extra eyes on it. While it’s an additional expense, first-time flippers can learn a lot about the market by working with an expert.
You’ll want great photos to list.
Step 8: Sell
Review offers and finalize the sale – again, house flippers may benefit from having an agent to assist with this process.
Now, you can start thinking about your next project.
How Much Does It Cost To Flip Houses in North Carolina?
To flip a house in North Carolina, you need to consider the costs throughout the entire flipping process. There are major costs, but also minor ones that add up that you don’t want to miss.
You will need to purchase the home. To give you an idea, the median home value of a North Carolina house is $320,922.
Rehab costs are determined by the size of your project. Factor in that contractors cost anywhere from $20 to $120 an hour. You can save money by doing work yourself during this time.
While you’re working on the home, you’ll be paying holding costs. Consider the interest on your loan, utilities, taxes, house insurance, utilities, and maintenance fees.
Once it’s time to sell, you’re not done. You’ll need to list your house, pay marketing costs, and possibly hire a realtor.
Closing costs at the end will range from 1 to 6 percent of the home’s total value.
Is the Current Housing Market Good in North Carolina?
Yes, the current housing market is good in North Carolina.
While some statistics may show a declining market, it’s important to understand this is relative to last year’s incredible year. 2022 was record-breaking in many ways, so a correction is natural.
2022’s bidding war year of competition is over, but the market is forecast to stay steady. Don’t get your hopes up waiting for a dip to buy.
North Carolina has shown strength and resilience compared to other states in the housing market, with only slight decreases in average home prices.
Do You Need a License to Flip Houses in North Carolina?
No, you do not need a license to flip houses in North Carolina.
You may consider getting your real estate license if you continue to flip homes. It can save you time and money for future sales.
To become a real estate agent in North Carolina, you must complete a broker prelicensing course and pass the North Carolina State Licensing Examination. It takes around 75 hours in total.
Other States to Look At for Profitable House Flipping
House flippers looking for prime real estate investing opportunities should consider other locations. Markets vary across the nation, so consider these places as well.
- Flipping Houses in California: Texas looking a little too big? Consider house flipping in sunny, coastal California. It’s a more competitive market but can certainly pay well.
- Flipping Houses in Texas: The influx of people moving to Texas is creating a strong demand for houses across the state. House flippers are set up to be in a strong sellers market soon, making it a great time to buy.
- Flipping Houses in Maryland: Maryland offers a resilient housing market that is increasing in popularity for house flippers. It has some of the greatest profit margins across the nation for home flips.
If you’re ready to start flipping houses, North Carolina is one of the best places to look. The southern state offers low-risk investments due to the strength of its market.
Although homes remain expensive in this area as national averages fall, it’s a great indication of the safety of your investment. With a high inventory right now, you have a chance to find and negotiate a great deal on a North Carolina property.
If this article prepared you for your house flipping plans in North Carolina, let us know in the comments or share it with other property investors.