Charleston’s older houses are a big part of what makes the city valuable, and a big part of what makes renovating here different. A renovation on the peninsula or in another historic district runs on a different schedule and a different budget from a typical suburban flip.
Board of Architectural Review
In the City of Charleston’s historic districts, the Board of Architectural Review approves exterior changes, demolitions and new buildings. Windows, roofing, porches and additions can all need approval, and the review takes time. Build that time into the schedule, because every month of approval is a month of interest and carrying costs.
The CL-100
The CL-100 is South Carolina’s wood infestation report, and it is standard on Charleston purchases. On an older house it often finds termite damage, wood rot or moisture problems in the crawl space. Order it early and price what it finds into the rehab budget.
Structural and moisture work
- Rotted sills and floor framing, especially under porches and piazzas
- Foundation settling and drainage problems
- Old wiring and plumbing that need full replacement
- Lead paint, which changes how the work has to be done
Hold a real contingency. On an older Charleston house, 10 to 15% of the budget is a sensible starting point.
Flood rules
If the house is in a flood zone, a renovation that costs more than about half the building’s value can require bringing it up to current flood standards. Check before you set the scope.
How the loan works
A fix and flip loan can fund up to 90% of the purchase price and 100% of the renovation at a 720+ credit score, within 70 to 75% of the after-repair value. The rehab funds are released in draws as the work is completed. If a project stalls waiting on approvals or on a structural surprise, a mid-rehab loan can lend on the property as it stands and add the money to finish.
See fix and flip loans in Charleston for terms.