In Utah County, a lot of flip profit lives in the basement. Turning an unfinished or dated lower level into legal bedrooms with egress windows can change what a 1970s split-level is worth, as long as the permits and the buyer pool line up.
In short: LendingStreet finances fix and flip projects on 1-8 unit investment properties in Provo, Orem and across Utah 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.
The core flip stock here is Orem, Provo, Springville and American Fork homes built from the 1960s through the 1980s: ramblers, split-levels and split-entry homes with original kitchens, popcorn ceilings and half-finished basements. Buyers are often young families who want move-in-ready space and extra bedrooms.
Newer north-county homes in Lehi or Saratoga Springs rarely need a full flip, but estate sales and dated 1990s homes do show up. Older homes near downtown Provo and Springville can need more structural and mechanical work, from foundation repairs to old wiring, and they are worth a careful inspection before you commit.
Finishing a basement adds living space, and in a market where families value bedroom count, that can lift the after-repair value. A basement bedroom generally needs a code-compliant egress window, and the finish work needs permits and inspections from the city.
Be careful with a second kitchen. Selling a home with an unpermitted basement apartment can scare off buyers and lenders, and some cities limit accessory apartments. Finish the space the way the city and your buyers expect.
On some programs we lend up to 90% of the purchase price and up to 100% of the rehab budget. Rehab funds are released in draws after inspections, so plan to pay for each stage before reimbursement. Our rehab draw guide explains the process.
We also look at after-repair value. Use sales of renovated homes in the same city and school area, with similar finished square footage above and below grade, because Utah appraisals separate the two. A finished basement adds value, but usually less per square foot than main-level space.
This example is illustrative and not a quote. An investor buys a 1978 split-entry home in Springville for $395,000 and plans a $78,000 renovation: new kitchen, two basement bedrooms with egress windows, flooring and paint. Similar renovated homes nearby support an after-repair value of about $585,000.
At 90% of purchase plus 100% of rehab, the loan is $433,500. Over a six-month project, estimated interest-only payments total about $22,759. The investor brings about $45,000 to closing, plus carrying costs.
| Line item | Amount |
|---|---|
| Purchase price | $395,000 |
| Rehab budget | $78,000 |
| Loan (90% of purchase + 100% of rehab) | $433,500 |
| Interest-only payments, 6 months | $22,759 |
| Taxes and insurance, 6 months | $2,220 |
| Selling costs, about 6% | $35,100 |
| Title and escrow at sale, about 1% | $5,850 |
| Closing costs at purchase (estimate) | $5,500 |
| Estimated profit before income taxes | $40,571 |
Utah has no real estate transfer tax, which helps your exit math compared with many states. Your main selling costs are commission, the seller's title insurance policy, escrow fees and any concessions. Closings are handled by title companies.
Spring and early summer are typically the busiest selling months along the Wasatch Front, so time your finish date if you can. Winter projects can still sell well, but listings in December and January usually see fewer showings, and snow can slow exterior work such as landscaping, concrete and roofing.
Homes on the benches above Provo, Orem, Mapleton and Alpine can carry wildfire exposure, and the whole Wasatch Front sits near the Wasatch Fault. Buyers and their insurers ask about both. Older masonry chimneys, unreinforced brick and steep lots can add cost to a rehab, so price structural work before you buy. A home on a bench lot may also need a defensible-space cleanup before an insurer will write a policy for your buyer.
Because prices are high relative to rents, many Utah County flips are sold rather than held. The exception is often a duplex or a home in a lower-priced south-county city, where rent can carry more of the payment. If you do want to keep one, a DSCR refinance qualifies on rent with no W-2s or tax returns, but expect to leave more equity in the property to make the ratio work. Our Provo DSCR page shows how that math tends to look.
Utah County has a deep bench of local flippers, and the best-priced homes often draw several offers. A fast, clean close is part of how investors compete, which is where a 10-day closing timeline helps. Have your entity documents, proof of funds and contractor bid ready before you make an offer.
Do not let competition push you into a thin margin. Price the full rehab, including basement egress, permits and a contingency of 10% or more, and walk away from deals where the after-repair value only works if everything goes right.
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 Utah fix and flip page.
Include contractor bids, photos and any past project history. Experience can affect leverage and terms.
On some programs, up to 90% of the purchase price and up to 100% of the rehab budget, subject to after-repair value.
In as little as 10 days when title, insurance and documents are ready. In a market where sellers compare offers on speed and certainty, having your file ready before you bid makes a real difference.
Yes. Value and after-repair value are part of every fix and flip file. In Utah, the appraiser will separate above-grade and basement square footage, so give us comparable sales that match both.
Yes, with permits and code-compliant egress windows. Confirm requirements with the city before you start.
Be careful. An unpermitted apartment can hurt your sale, and some cities limit accessory units. Finish to what the city allows and buyers expect.
No. Utah has no real estate transfer tax. Budget for commission, title and escrow.
Yes. A DSCR refinance qualifies on rent, though Utah County prices often mean leaving more equity in the property.
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