Birmingham gives flippers something that is hard to find in bigger cities: entry prices low enough that the rehab is a large share of the deal, and older brick and craftsman houses that respond well to a full renovation.
In short: LendingStreet finances fix and flip projects across the Birmingham metro on 1 to 8 unit investor properties, with loans from $150,000 to $5M+. On some programs we cover up to 90% of total cost and up to 100% of the rehab, close in as little as 10 days and keep payments interest-only. The key local checks are foundations on hillside lots, older wiring and how a foreclosure title was cleared.
On the east side, Crestwood, Avondale, Forest Park and East Lake have early twentieth century bungalows and brick cottages that sell well once renovated, with Crestwood and Forest Park at the higher end. Woodlawn and Norwood are earlier in their turnaround, with lower prices and more condition risk.
South of the city, Homewood, Vestavia Hills and Hoover draw buyers for their schools, so flips there are often 1960s and 1970s ranches and split-levels updated for families. To the west, Bessemer, Fairfield and Midfield offer the lowest entry prices in the metro, while Trussville, Gardendale, Pelham and Alabaster have newer suburban stock.
| Area | Typical housing | Common rehab scope |
|---|---|---|
| Crestwood, Avondale, Forest Park | 1910s-1940s bungalows and brick cottages | Electrical, plumbing, kitchens, crawlspace |
| Homewood, Vestavia Hills, Hoover | 1950s-1970s ranches and split-levels | Kitchens, baths, open layouts, roofs |
| East Lake, Woodlawn, Norwood | Older frame and brick homes | Full systems, structure, exterior |
| Bessemer, Fairfield, Midfield | Mid-century brick and frame houses | Roof, HVAC, cosmetic, some structure |
Birmingham is built on ridges and valleys, and many older homes sit on sloped lots with crawlspaces and pier foundations. Humidity, drainage and decades of settling mean sagging floors, moisture under the house and termite damage are common findings.
Homes from before the 1950s may still have knob-and-tube or undersized electrical service and older cast iron or galvanized plumbing. Budget for a full rewire or repipe on early houses unless an inspection shows it was already done.
Our fix and flip program covers single-family homes and 2 to 8 unit buildings, with loans from $150,000 to $5M+. Depending on the program, financing can reach 90% of the total project cost and 100% of the renovation budget, and closings can happen in as little as 10 days.
You pay interest only while you own the property. Renovation funds are released through a draw process after each stage of work is inspected, rather than all at once. Our investor loans are business-purpose loans on non-owner-occupied property.
This example is illustrative and not a quote. An investor buys a dated 1940s brick bungalow in Crestwood that needs a rewire, new HVAC, a kitchen, a bath and crawlspace repairs. The purchase price is $165,000, the rehab budget is $60,000 and the after-repair value, based on renovated sales nearby, is $300,000.
At 90% of the purchase price plus 100% of the rehab, the loan is $208,500, about 70% of the after-repair value. The estimated monthly interest-only payment on the full loan is about $1,824, and the plan is a 5-month hold. For simplicity the example assumes the full loan amount accrues interest for the whole hold.
After an estimated 7% in selling costs, the projected profit is about $38,503 on roughly $31,997 of cash invested. If the sale takes three months longer than planned, added interest and carrying costs of about $6,823 would cut the profit to about $31,680, which is why a realistic timeline matters as much as the rehab number.
| Item | Amount |
|---|---|
| Purchase price | $165,000 |
| Rehab budget | $60,000 |
| Loan (90% of price + 100% of rehab) | $208,500 |
| Estimated monthly interest-only payment | $1,824 |
| Interest over 5 months | $9,122 |
| Taxes, insurance and utilities | $2,250 ($450 a month) |
| Buy-side closing costs (estimate) | $4,125 |
| Selling costs (about 7%) | $21,000 |
| Sale at after-repair value | $300,000 |
| Estimated profit | $38,503 |
| Cash invested (down payment, closing, carry) | $31,997 |
The City of Birmingham issues building permits through its planning, engineering and permits department, while Homewood, Hoover, Vestavia Hills, Bessemer and the other suburbs each run their own permit offices. Expect permits for electrical, plumbing, mechanical, roofing and structural work.
Jefferson County is unusual in having two courthouse divisions, Birmingham and Bessemer, so confirm where your deed and mortgage are recorded. Alabama charges a deed tax and a mortgage recording tax when documents are recorded; both are modest compared with many states.
Alabama property taxes are low by national standards, but a rental or flip does not get the homestead exemption, so ask the Jefferson County tax assessor how the property will be classified and billed after you buy.
If you buy a foreclosure, ask your title company about Alabama's statutory right of redemption, which can let a former owner reclaim some properties for a period after a foreclosure sale. Insurance quotes should account for severe spring storms and tornado exposure, and older roofs can raise the premium.
Our Alabama fix and flip page covers the program statewide.
When the work is done, you can list the property and pay off the loan at closing, or you can lease it and refinance into a DSCR loan with a 30-year term available, qualified on the rent rather than W-2s or tax returns.
Birmingham rents are solid relative to purchase prices, which is why many local investors keep their flips as rentals and refinance into a DSCR loan. See the local DSCR loan page for how those loans size.
The more of this you have on day one, the sooner we can size the loan and schedule closing.
We finance investor rehabs throughout Jefferson, Shelby, St. Clair and Walker counties. Share the deal basics, including price, scope, budget and timeline, and the team will review the file and lay out the loan amount and next steps.
Request a quote with the form below or call (877) 298-1001.
Yes, subject to clear title. Alabama has a statutory right of redemption after some foreclosure sales, so ask the title company how it applies before you commit rehab money.
It matters for recording. Jefferson County has Birmingham and Bessemer divisions, and your closing attorney or title company will record in the right one.
Alabama taxes are low, but investor property does not get the homestead exemption. Ask the assessor for the expected bill instead of using the seller's.
Yes. We finance 1 to 8 unit investor rehabs across Jefferson and Shelby counties and nearby areas, subject to normal review.
Fix and flip loans run from $150,000 to $5M+ on 1 to 8 unit investor properties.
It is held back at closing and released in draws as work is completed and inspected.
Yes. Many investors refinance into a DSCR loan that qualifies on the property's rent, with no W-2s or tax returns.
Yes. LLC borrowers are standard on our investor loans.
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