Winston-Salem has a deep supply of houses that need work: 1920s bungalows near downtown, mill-village homes on the south and east sides and brick ranches from the 1950s and 1960s. Buyers for renovated homes are there too, from hospital staff to first-time buyers to investors looking for turnkey rentals.
In short: LendingStreet offers fix and flip loans on 1-8 unit investment properties in Winston-Salem and across Forsyth County from $150,000 to $5M+. On some programs we finance up to 90% of cost and up to 100% of the rehab budget, with short-term, interest-only payments and closings in as little as 10 days. The exit is a sale or a refinance into a DSCR rental loan.
Older neighborhoods close to downtown, such as Ardmore, the West End, Washington Park and Holly Avenue, have early twentieth century bungalows and foursquares that sell well when renovated, because buyers want to be near the hospitals, the Innovation Quarter and the downtown restaurants. Southside, Waughtown, Konnoak and parts of East Winston have smaller mill-era and mid-century homes at lower entry prices, where a solid rehab can serve first-time buyers or become a rental.
In the suburbs, flips tend to be 1970s to 1990s homes in Clemmons, Lewisville and Kernersville that need kitchens, baths, floors and roofs rather than structural work. Those projects are usually lower risk, with thinner margins.
Margins in Winston-Salem are usually built on buying right rather than on rising prices. With moderate resale values, a rehab that runs $20,000 over budget can erase much of the profit, so experienced local flippers lean on tight scopes, repeat contractors and conservative after-repair values drawn from sales within a few blocks.
This example is illustrative and not a quote. An investor buys a three-bedroom bungalow south of downtown for $165,000 with a $78,000 rehab budget and an after-repair value of $315,000. Total cost is $243,000.
The loan covers 90% of the purchase ($148,500) and 100% of the rehab, for $226,500, or about 93% of total cost. The investor brings $16,500 plus closing costs at purchase. Over a five-month project with about 70% of the loan drawn on average, estimated interest-only carry is about $6,937.
At sale, commissions and seller costs of about $17,325, the North Carolina excise tax of about $630, purchase closing costs of $3,500 and $4,000 for taxes, insurance and utilities during the hold leave an estimated profit of about $39,608 before income taxes.
| Line item | Amount |
|---|---|
| Purchase price | $165,000 |
| Rehab budget | $78,000 |
| Total cost | $243,000 |
| Loan (90% of purchase + 100% of rehab) | $226,500 |
| Cash at purchase (before closing costs) | $16,500 |
| Estimated interest carry | $6,937 |
| Selling costs and excise tax | $17,955 |
| Estimated profit before income taxes | $39,608 |
Old Salem and some other parts of the city have local historic overlay zoning. In a local historic district, exterior changes such as windows, siding, porches, roofing materials and additions generally need a certificate of appropriateness from the Historic Resources Commission before work starts. That review adds time and can rule out cheaper materials.
National Register listing alone usually does not restrict a private owner's work, but local overlay zoning does. Check the property's zoning before you write a scope that replaces original windows with vinyl.
Compare the result with the risk. A five-month timeline is realistic for cosmetic and mechanical updates; structural or foundation work, permit delays or a slow sale can push carry costs well past the estimate. Build at least a 10% contingency into the rehab line on older homes.
Winston-Salem's older houses share a familiar list of surprises. Plan the contingency around them.
Building permits for work inside Winston-Salem and most of Forsyth County are handled through the joint City-County inspections office under the Unified Development Ordinances. Electrical, plumbing and mechanical work need permits and inspections, and finished homes sell more easily with permits closed out, because buyers' inspectors and attorneys ask.
Lenders release rehab draws after inspections, so keep the permit card and photos current. A draw delayed because work is not visible or not inspected costs you interest and contractor goodwill.
Plan inspections into the schedule. Rough-in inspections for electrical, plumbing and mechanical work must pass before insulation and drywall, and a failed inspection can stop the crew for days. Experienced local contractors know what the inspectors expect, which is one reason a proven team improves both the schedule and the loan terms you can get.
Renovated bungalows near downtown and the hospitals attract medical staff and young professionals. Smaller renovated homes in the south and east attract first-time buyers using financing with appraisal and repair requirements, so cosmetic flips with unresolved safety items can lose buyers late. Investors also buy finished rentals, often paying cash or using DSCR loans.
If the sale market softens, holding a finished property as a rental is a realistic option in Winston-Salem, where rents for renovated three-bedroom homes are often strong relative to price.
Days on market vary by price band. Renovated homes priced for first-time buyers have tended to sell faster than higher-priced renovations, so set the finish level to the neighborhood rather than to your own taste.
If you keep the property, a DSCR loan can pay off the flip loan once it is leased, qualifying on rent with no W-2s or tax returns. See our Winston-Salem rate-and-term refinance page for the payoff process. North Carolina's statewide flip program details are on our North Carolina fix and flip page.
A refinance also lets you defer the decision to sell until the market or your plans favor it.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, purchase price, rehab scope and budget, comparable sales and your timeline. We will size the loan, explain draws and give you a closing date you can plan around. Use the form below or call (877) 298-1001.
On some programs, up to 90% of total cost and up to 100% of the rehab budget, based on the deal and your experience.
In as little as 10 days when title, insurance and the scope of work are ready.
Only if the property is in a local historic overlay district and the work changes the exterior. Check the zoning first.
The seller customarily pays North Carolina's excise tax of $1 per $500 of the sale price.
Through draws after inspections confirm completed work.
Yes. We finance 1-8 unit residential investment properties.
Yes. You can refinance into a DSCR loan that qualifies on rent.
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