Bismarck flips split into two styles. Character homes near the Capitol sell to buyers who want walkable older neighborhoods, while 1960s and 1970s ramblers in south Bismarck and Mandan sell to first-time buyers on a budget. The loan works the same, but the scope and the buyer do not.
In short: LendingStreet finances fix and flip projects on 1-8 unit investment properties in Bismarck and Mandan, with loans from $150,000 to $5M+. Programs go up to 90% of cost and up to 100% of rehab on some files, close in as little as 10 days and are short-term, interest-only loans. Investors exit by selling or by refinancing into a DSCR loan.
In the Cathedral District and the blocks around the Capitol and downtown, early 1900s homes have hardwood floors, porches and built-ins that buyers value, along with old wiring, plumbing, foundations and windows that need attention. Done well, these projects command strong prices for the area, but surprises behind plaster walls are common.
The more common flip is a 1960s or 1970s rambler, split-level or bi-level in south Bismarck, east Bismarck or Mandan. These need kitchens, baths, flooring, paint and often windows and furnaces. The work is predictable, and buyers include young families, state employees and healthcare workers.
Mandan offers a third option: lower-priced older homes where the margin comes from a careful budget rather than a high resale price. Because many Mandan houses sell for less than Bismarck homes of the same size, the numbers need to be tight from the start.
Programs lend up to 90% of the purchase price and up to 100% of the rehab budget on some files, measured against the after-repair value. Rehab funds are held back and released in draws after each phase is inspected. Payments are interest-only on a short term.
The minimum loan is $150,000. Many Mandan houses are priced near or below that, so the purchase and rehab together need to reach the minimum. A larger project, a small multi-unit or two houses at once are common answers.
Your loan term should cover the whole plan: closing, permits, construction, listing and the buyer's closing. Buyers using financing may need repairs completed before their lender will close, so leave time for that too.
This example is illustrative and not a quote. An investor buys a 1920s bungalow for $215,000 and budgets $75,000 for electrical, plumbing, a new kitchen and bath, refinished floors and basement work. Recent sales of updated homes nearby support a resale of $355,000.
The loan covers 90% of the price plus the full rehab, $268,500. Over a 6-month project, estimated interest-only payments total about $14,096. With about $4,000 of purchase closing costs and about $21,300 of selling costs, total costs are about $329,396 and projected profit is about $25,604 before income taxes.
If the resale price comes in lower or the project runs long, profit shrinks quickly. Many investors set a minimum profit target before they buy and walk away from houses that do not clear it with a cushion.
| Item | Amount |
|---|---|
| Purchase price | $215,000 |
| Rehab budget | $75,000 |
| Loan amount | $268,500 |
| Interest over 6 months | $14,096 |
| Purchase closing costs | $4,000 |
| Selling costs (about 6%) | $21,300 |
| Total costs | $329,396 |
| Projected profit | $25,604 |
Older Bismarck homes share a list of common issues. Have your inspector and contractor look for them before you set the budget.
Have your inspector and contractor walk the house together before you lock the budget, and plan a contingency of 10 to 15 percent of the rehab for older homes. Surprises behind walls are the main reason character-home flips go over budget.
Concrete, roofing, siding and landscaping are hard to do in a Bismarck winter, and heated enclosures cost extra. Interior work can continue all year. Many investors buy in late summer or fall, work inside through the cold months and list in spring, when buyer traffic is strongest.
Build your loan term around that calendar. A project that slips past spring can sit through a slower summer and fall, adding months of interest.
Contractors are also busiest in spring and summer, so booking trades early for exterior work helps keep the schedule on track.
Bismarck and Mandan each run their own building inspection departments. Structural, electrical, plumbing and mechanical work generally need permits and licensed contractors. Buyers and their lenders may ask for permit records, and unpermitted work can slow a sale. Check the special assessment balance too, since buyers will see it.
A rehabbed Bismarck home can work as a rental if the sale market slows. Updated three-bedroom homes in south Bismarck and Mandan rent to the same steady tenant base that supports the local market. Run the DSCR on the renovated tax figure before you start, so the rental backup plan is real.
Keep in mind that the renovated home will likely be assessed at a higher value the next year, raising taxes. A rental that looks strong on the old tax bill may look different on the new one.
A detailed scope, a contractor bid, recent comparable sales and a realistic schedule show that you understand the project. Investors with completed flips usually qualify for higher leverage, but first-time investors can qualify with a well-prepared file and an experienced contractor.
A realistic resale price matters most. Use sales of updated homes on similar streets from the last several months, not the highest sale in the neighborhood. A conservative exit price protects both you and the loan.
Send the address, price, scope, bid and comparable sales. Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below.
Tell us about any past projects, even small ones. A track record helps with leverage and speeds up approval on the next house.
Up to 90% of the purchase price and up to 100% of rehab on some programs, measured against the after-repair value.
They can be, but older homes carry more surprises. Price wiring, plumbing and foundation work carefully.
Yes, if the loan amount reaches $150,000 with the rehab included.
After each phase is inspected. You or your contractor fund the work first and the draw reimburses it.
No state real estate transfer tax applies. Title, recording and selling costs still apply.
Interior work, yes. Exterior and concrete work are harder and more expensive in winter.
Yes, into a DSCR loan if the rent supports the payment.
In as little as 10 days with a complete file.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.