Madison has a shortage of move-in-ready starter homes, and buyers notice when a dated ranch or bungalow is brought back to life. That demand is why flips here can work even with the city's high taxes and long winters.
In short: LendingStreet finances fix and flip projects on 1-8 unit investment properties in Madison and across Dane County from $150,000 to $5M+. Some programs lend up to 90% of the purchase cost and up to 100% of the rehab budget, interest-only, with closings in as little as 10 days. You exit by selling or by refinancing into a DSCR rental loan.
Most flips here are postwar homes: 1950s and 1960s ranches and Cape Cods on the Northside, in Hawthorne, Lake Edge and the west side's Midvale Heights and Orchard Ridge, plus 1970s split-levels in Monona, Fitchburg and Sun Prairie. Buyers are often first-time owners and young families priced out of the isthmus.
Older bungalows and two-flats on the east side can also be flipped, but they come with more surprises: plaster, balloon framing, older wiring and, in pre-1978 homes, lead paint.
Inventory is the constant challenge. Madison has had few homes for sale relative to demand, and many dated homes sell to owner-occupants who plan to renovate themselves. Investors who find deals usually do it through estate sales, direct outreach and relationships with agents, and they move quickly when a property fits.
These items come up in local scopes again and again. Price them before you set your offer.
On some programs we lend up to 90% of the purchase price and up to 100% of the rehab budget. Rehab funds are held back and released in draws after inspections. Our rehab draw guide explains how to request draws and what inspectors look for.
After-repair value drives the plan. Use recent sales of renovated homes in the same neighborhood and school attendance area. In Madison, school boundaries and distance to the isthmus can move values noticeably over a short distance.
This example is illustrative and not a quote. An investor buys a dated 1950s ranch on Madison's Northside for $285,000 and plans a $62,000 renovation: kitchen, bath, flooring, basement waterproofing and a new furnace. Recent sales of renovated homes nearby support an after-repair value of about $420,000.
At 90% of purchase plus 100% of rehab, the loan is $318,500. Over a six-month project, estimated interest-only payments total about $16,721. The investor brings about $33,500 to closing, plus carrying costs during the project.
| Line item | Amount |
|---|---|
| Purchase price | $285,000 |
| Rehab budget | $62,000 |
| Loan (90% of purchase + 100% of rehab) | $318,500 |
| Interest-only payments, 6 months | $16,721 |
| Taxes and insurance, 6 months | $3,600 |
| Selling costs, about 6% | $25,200 |
| Wisconsin transfer fee ($3 per $1,000) | $1,260 |
| Closing costs at purchase (estimate) | $5,000 |
| Estimated profit before income taxes | $21,219 |
Exterior work such as roofing, siding, concrete and landscaping is hard to schedule from December through March in Madison. Interior work can continue, but a vacant house has to stay heated to protect plumbing, and that adds to your carrying costs.
Spring is usually the busiest selling season in Dane County. Many local flippers aim to buy in late summer or fall, work through the winter on interiors and list in spring. Line up roofers and concrete contractors early, because their schedules fill quickly once the weather breaks.
Madison's Building Inspection division issues permits for structural, electrical, plumbing and mechanical work, and suburbs have their own building departments. Work done without permits can come up in a buyer's inspection or appraisal and slow your sale. Budget time for inspections, especially when contractors are busy.
Some changes need zoning review as well as a building permit, such as adding a unit, expanding a footprint or changing a two-flat's layout. Ask the city early if your plan goes beyond a cosmetic and systems renovation, because those reviews can add weeks to a project.
Wisconsin charges a transfer fee of $3 per $1,000 of value, typically paid by the seller. Add commission, title insurance for the buyer, and any concessions. Madison's high property taxes also mean every extra month on the market costs more than it would in many places.
Wisconsin sellers also complete a real estate condition report, so document the work you did and disclose what you know.
Renovated homes in Madison lease well, and some investors decide to hold. A DSCR refinance qualifies on rent with no W-2s or tax returns. Because taxes are high, run the ratio carefully before you choose to keep a property. Our Madison DSCR page shows how that math tends to look.
Holding also changes what you renovate. A rental needs durable finishes, efficient heating and simple layouts, while a flip may justify higher-end details that buyers pay for. Decide early so you do not spend money on features that will not pay off as a rental.
Send LendingStreet the address, price, scope of work and ARV estimate. We will size the loan, set up the draw schedule and tell you what we need to close. Statewide information is on our Wisconsin fix and flip page.
Contractor bids, photos and a list of past projects help us move faster and can affect leverage and terms. If you are unsure whether to flip or hold, we can show both paths before you buy.
On some programs, up to 90% of the purchase price and up to 100% of the rehab budget, subject to after-repair value. Experience and the property itself affect the final leverage.
In as little as 10 days when title, insurance and documents are ready. In a tight Madison market, a fast and certain close can help your offer stand out against other buyers.
Yes. Value and after-repair value are reviewed on every fix and flip file. Give us renovated sales from the same neighborhood and school area to support your ARV.
Yes. We finance 1-8 unit investment properties, and two-flats can be sold to investors or converted where the city allows.
Spring is usually busiest. Many flippers work through winter on interiors and list when the market picks up.
It is $3 per $1,000 of value, typically paid by the seller at closing. On a flip, include it in your exit costs along with commission and title.
Yes. A DSCR refinance qualifies on rent, with no W-2s or tax returns. Lease the home first, and run the ratio with Madison's full tax bill before you decide to keep it.
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.