Durham's flip inventory is unusually old. Mill houses built for tobacco and textile workers, 1920s bungalows and post-war cottages make up much of the close-in housing stock, and buyers will pay well for one that is done right. Done wrong, the same house can eat a budget in the crawl space before the kitchen ever gets ordered.
In short: LendingStreet offers fix and flip loans in Durham from $150,000 to $5M+ on 1-8 unit investor properties, funding up to 90% of the purchase cost and up to 100% of the rehab budget on some programs. Loans are short-term and interest-only and can close in as little as 10 days. Your exit is a sale or a refinance into a DSCR loan if you decide to keep the property.
The most common Durham flip is a small single-family house within a few miles of downtown: a two-bedroom mill house in East Durham or Old East Durham, a bungalow in Walltown or Old North Durham, or a 1950s brick ranch in Northgate Park or near NC Central University. Many have original heart-pine floors, crawl spaces instead of basements, and decades of patchwork electrical and plumbing.
Buyers in these neighborhoods often compare a flip to new infill construction nearby, so finish quality matters. Open kitchens, a second bathroom where the floor plan allows it, and a dry, encapsulated crawl space tend to separate a quick sale from a long one.
Old Durham houses hide their problems underneath. Crawl space moisture, termite damage to sills and joists, settled piers and cast-iron or clay sewer laterals show up often enough that experienced local flippers budget for them before inspection.
Durham has several local historic districts, including Trinity Park, Morehead Hill, Cleveland Street and Holloway Street. In these districts, exterior changes such as new windows, siding, porches or additions usually need a Certificate of Appropriateness from the historic preservation commission before work starts. Interior work is generally not reviewed, but permits still apply.
Building, electrical, plumbing and mechanical permits run through Durham City-County Inspections. Plan your draw schedule around permit timing, because inspections must sign off before final draws on most projects. North Carolina also requires a licensed general contractor on projects above a dollar threshold, so check whether your scope crosses it.
This example is illustrative and not a quote. An investor buys a two-bedroom East Durham mill house for $265,000 and plans a $95,000 renovation that adds a second bathroom and fixes the crawl space. Comparable renovated homes support an after-repair value of about $485,000.
At 90% of purchase, the loan funds $238,500 at closing, and the full $95,000 rehab is released in draws, for a total loan of $333,500. The investor brings $26,500 plus closing costs. If the full balance were drawn on day one, estimated interest-only payments would be about $2,918 a month; actual interest is lower early on because draws are released as work is done.
Over a 7-month hold, budgeted interest of about $20,427, selling costs of about 7% of the sale price ($33,950) and about $9,000 for closing, insurance, utilities and taxes leave an estimated profit of about $61,623 before income taxes. As the seller, the investor also pays North Carolina's deed excise tax of $1 per $500, about $970 at that price, which is included in selling costs here.
| Item | Amount |
|---|---|
| Purchase price | $265,000 |
| Rehab budget | $95,000 |
| Loan at 90% of purchase plus 100% of rehab | $333,500 |
| Investor cash for purchase | $26,500 |
| Estimated interest over 7 months (full balance) | $20,427 |
| Selling costs (about 7%) | $33,950 |
| Other holding and closing costs | $9,000 |
| After-repair value | $485,000 |
| Estimated profit before income taxes | $61,623 |
Durham comps can change sharply within a few blocks. A renovated house on a quiet street in Old North Durham may sell for far more than a similar house a half mile east, and new infill homes can distort the picture if you compare a two-bedroom flip to a new three-bedroom build.
Bring comps of similar size, age and bedroom count sold in the last six months, ideally on the same side of major roads like Alston Avenue or Roxboro Street. A realistic ARV keeps the loan sized correctly and keeps your draw requests moving.
Rehab funds are held back and released in draws after an inspection confirms the work. Submit a line-item budget at the start, group work into logical phases such as demolition and structure, rough-ins, and finishes, and keep photos for each request.
Durham's mild winters allow work year-round, but summer humidity can slow drywall and paint and makes crawl space work unpleasant. Contractors are busy across the Triangle, so lock in your crew before you close.
Most Durham flips are sold to owner-occupant buyers, often professionals moving for work at Duke or RTP. If the numbers favor keeping the property, you can refinance into a DSCR loan qualified on the rent. Durham rents are strong, but prices are high relative to rent, so check the ratio before you commit to a hold.
Investors who want to keep a property sometimes plan the rehab around a rental from day one, such as adding a separate unit where the zoning allows it. See our Durham rate-and-term refinance page for how that exit works.
Send the address, purchase price, rehab budget and your recent flip experience. We size the loan on purchase cost, rehab and the after-repair value and come back with terms you can compare. Use the form below or call (877) 298-1001.
Up to 90% of the purchase cost and up to 100% of the rehab budget on some programs, subject to the after-repair value and your experience.
Experience helps with leverage and pricing. First-time flippers can qualify on some programs, often with more cash in the deal and a qualified contractor.
It can. Exterior changes in local historic districts usually need a Certificate of Appropriateness before work begins. Build that review time into your schedule.
In as little as 10 days with a complete file, a clear title and a closing attorney ready.
Fix and flip loans start at $150,000. Most close-in Durham flips clear that easily once the rehab budget is included.
Yes. Once the work is done and the property is leased, you can refinance into a DSCR loan that qualifies on the rent.
The seller customarily pays it, so you pay it when you sell. It is $1 per $500 of the sale price.
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