Spokane flips are old-house projects. A lot of the inventory north of the river and in West Central was built before 1940, and the profitable flips are the ones where the investor knew, before closing, which of the house's problems were hiding in the basement, the walls and the backyard.
In short: LendingStreet offers fix and flip loans in Spokane 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 core Spokane flip is a two- or three-bedroom bungalow or foursquare in West Central, Emerson-Garfield, the Garland District, North Hill or Hillyard, bought dated and sold to a first-time buyer or a family moving from a higher-cost market. On the South Hill, flips are fewer but larger, usually older homes that need a full update.
Buyers here compare older homes against new construction in Spokane Valley, Liberty Lake and the north side. A finished basement, updated electrical and a new roof often matter as much as the kitchen.
This example is illustrative and not a quote. An investor buys a 1920s West Central bungalow for $268,000. The rehab budget is $92,000, broken out in the table. Renovated homes nearby support an after-repair value of about $450,000.
At 90% of purchase, the loan funds $241,200 at closing and releases the full $92,000 rehab in draws, for a total loan of $333,200. If the full balance were drawn on day one, estimated interest-only payments would be about $2,916 a month, or about $20,408 over 7 months.
Selling costs, including commission and Washington's excise tax paid by the seller, are budgeted at about 8% ($36,000). With $9,500 for closing, insurance, utilities and taxes during the hold, the estimated profit is about $24,092 before income taxes. That margin is thin enough that two extra months of winter carry, or an oil tank that turns out to be leaking, could erase much of it, which is why Spokane flippers inspect hard and schedule carefully.
| Rehab line | Budget |
|---|---|
| Roof and gutters | $16,000 |
| Electrical rewire and panel | $14,000 |
| Heating oil tank decommissioning | $4,000 |
| Kitchen | $24,000 |
| Bathroom | $12,000 |
| Flooring, paint and trim | $14,000 |
| Contingency | $8,000 |
| Total rehab | $92,000 |
Old Spokane houses tend to share the same hidden problems. Knob-and-tube or ungrounded wiring is common in pre-1940 homes, and many insurers will not cover it. Heating oil tanks, active or abandoned, turn up in backyards and basements; a leaking tank can mean soil cleanup. Older sewer lines, foundation cracks and basement water are the next most common surprises.
Asbestos is also common in older Spokane homes, in flooring, duct wrap and siding. Testing before demolition protects your crew and your schedule. If abatement is needed, licensed abatement contractors must handle it, and the cost belongs in the line-item budget from the start.
Spokane winters slow exterior work: roofing, siding, concrete and exterior paint are hard to do well in freezing weather, and short days shrink the workday. Interior work continues, but heating a vacant house under renovation adds cost.
Many experienced Spokane flippers buy in late summer or fall, do interior work through winter, finish exterior work in spring and list when the buying season picks up. Build your schedule, and your interest budget, around the season you are in.
In the City of Spokane, permits run through the Development Services Center; Spokane Valley and Spokane County have their own permit offices. Structural, electrical, plumbing and mechanical work generally needs permits and inspections, and draw inspections will want to see that permitted work has passed.
Washington requires contractors to be registered with the Department of Labor and Industries, and electricians and plumbers must be licensed. Verify registration before you hire, since an unregistered contractor can leave you without recourse if something goes wrong.
Spokane's buyers include local first-time buyers, families relocating from Western Washington and other higher-cost markets, and medical and university employees. Buying activity picks up in spring and summer, so a flip finished in late winter can hit the market at a good time.
Price against recent sales of similar renovated homes in the same neighborhood. A renovated bungalow in the Garland District and one in Hillyard can sell for quite different prices even at the same size.
If you decide to keep the property, a DSCR refinance can replace the flip loan, qualified on the rent. Spokane prices are high relative to rents, so check the ratio before you plan on holding a single-family home. Flips with a separate unit, such as a basement apartment where zoning allows, can support a hold more easily.
Remember that Washington's statewide rent increase limits apply to many rentals, so set the initial rent at market from the start.
Send the address, purchase price, line-item budget and your recent projects. We size the loan on purchase, rehab and the after-repair value. 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.
In as little as 10 days with a complete file and escrow ready.
Yes, interior work continues. Exterior work like roofing and concrete is harder in freezing weather, so plan the schedule and interest budget accordingly.
It depends on whether the tank is intact and whether soil is affected. Get a tank scan before closing and budget for decommissioning or removal.
The seller customarily pays the real estate excise tax, so plan for it in your selling costs.
Yes. Washington requires contractors to be registered with Labor and Industries, and electrical and plumbing work requires licensed trades.
Yes. Once renovated and leased, the property can move to a DSCR loan qualified on the rent.
Yes. Fix and flip loans cover 1-8 unit investor properties. Small multi-unit rehabs also give you the option to keep the property and refinance into a DSCR loan on the combined rent.
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