Charleston has plenty of century-old houses that need work, and buyers who will pay for a finished one. The margin lives in the gap between those two prices, and in how well you price the parts of an old hillside house you cannot see.
In short: LendingStreet funds fix and flip loans on 1-8 unit investor rehabs in Charleston and the Kanawha Valley, from $150,000 to $5M+, up to 90% of total cost and up to 100% of rehab on some programs. Loans are short-term and interest-only, can close in as little as 10 days, and repay through a sale or a refinance into a DSCR loan. For Charleston projects, the scope of work and realistic resale comps matter more than anything else in the file.
Much of the city's housing went up between the early 1900s and the 1950s. On the East End you find frame and brick homes near the Capitol, some still single-family and some carved into apartments. The West Side and Elk City areas have smaller homes at lower prices, which means more projects but also more variation in finished values from block to block.
Kanawha City offers flatter lots and more consistent brick ranches and Cape Cods. South Hills and Fort Hill have larger homes where a full renovation can sell to professionals, but those streets also bring steep driveways, retaining walls and drainage work.
Old houses on hillsides tend to hide the same few problems. Price them into your bid instead of your contingency.
This example is illustrative and not a quote. An investor buys a dated South Hills house for $185,000 and plans a $65,000 renovation, for a total project cost of $250,000. The finished value supported by nearby sales is $335,000.
The loan covers 85% of the purchase and 100% of the rehab, a total of $222,250, or about 88.9% of cost. Interest-only carry on the fully drawn balance for six months is about $10,835. With about $5,500 in closing costs on the purchase and selling costs of about 7%, or $23,450, the estimated profit is about $45,215.
Cash needed at closing is the 15% of the purchase not financed plus closing costs, about $33,250, with interest paid during the project.
| Line | Amount |
|---|---|
| Purchase | $185,000 |
| Rehab budget | $65,000 |
| Loan (85% of purchase + 100% of rehab) | $222,250 |
| Six months of interest-only carry | $10,835 |
| Selling costs (about 7%) | $23,450 |
| After-repair value | $335,000 |
| Estimated profit | $45,215 |
Charleston does not have the sales volume of a large metro, so the after-repair value often rests on a handful of sales. A renovated house on a street where nothing has sold above a certain level in years will struggle to set a new high. Pull sales from the same neighborhood and similar slope and parking, not just the same zip code.
If the resale case is thin, consider the rental exit. Many Charleston rehabs pencil as a hold, refinanced into a DSCR loan once a tenant is in place.
Rehab funds are held back and released in draws after an inspector confirms work is complete. Build your budget by line item, such as roof, electrical, kitchen and drainage, so each draw matches finished work. Plan for permits through the City of Charleston for structural, electrical and plumbing work, or through Kanawha County outside city limits.
Keep receipts and photos for each stage. Inspections move faster when the inspector can match finished work to the budget line, and a clean draw history also helps if you later refinance the house into a rental loan.
Many West Side houses sell for prices where purchase plus rehab is below what it takes to reach a $150,000 loan. Projects that work usually have a larger scope, a higher-priced neighborhood, or more than one unit. Converting or restoring a 2-4 unit house on the East End can also bring the loan into range, as long as the use is permitted.
Two exits are common. Sell to an owner-occupant buyer, often a hospital or state government employee, or keep the house and refinance into a 30-year DSCR loan based on the new rent. Know which you want before you choose finishes; a rental build-out and a retail flip are priced differently.
Buyers in Charleston tend to be practical. Updated systems, a dry basement, off-street parking and a solid roof often matter more to resale than high-end finishes, and appraisers in this market give real weight to those items.
Rehabs in older Kanawha Valley houses rarely finish early. Wet weather slows exterior and drainage work, and electricians and plumbers can be booked weeks out. Build a schedule with slack, and budget interest, insurance, utilities and taxes for the full hold, not just the construction months.
Selling also takes time. List the house with enough term left on the loan that a slow showing period does not force a price cut. If the market softens, the rental exit gives you a second path.
Send the address, purchase price, line-item scope of work and the comparable sales behind your after-repair value. Tell us about past projects and your contractor. We review the deal, not just the borrower, and can give you terms quickly.
Photos of the current condition help us understand the scope before an inspection.
Yes. LendingStreet funds 1-8 unit investor rehabs in Charleston, South Charleston, St. Albans, Dunbar, Cross Lanes and nearby Kanawha and Putnam county towns. Most Charleston projects also need permits for structural or system work.
Up to 100% of the rehab budget on some programs, with total financing up to 90% of cost. Rehab money is released in draws as work is completed.
Yes. Fix and flip loans use a valuation that includes the after-repair value, so bring the sales that support your number.
In as little as 10 days when the title, insurance and your scope of work are ready. Delays in permits or contractor scheduling can push that out.
You can refinance into a DSCR rental loan if the rent supports it. Many Charleston projects are planned with that backup exit.
Experience helps with leverage. A first project with a strong contractor and a clear budget can still qualify. Your contractor's track record is part of the review.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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