Strategy
Fix and flip
Myrtle Beach.
By Devin Day, Operations Officer & licensed MLO · Chapter3 Realty · Updated August 15, 2026
Flips reward discipline and punish sloppy math. Here is the cost stack and the financing that fund a Grand Strand flip.
The strategy
Fix and flip math for Myrtle Beach.
A fix and flip is a short hold. You buy a house below market, fix it up, and sell it within a few months. The profit comes from buying right and keeping every cost on a leash. Below is the whole deal in one example with round numbers.
The math
How a fix and flip works, step by step
- 1
Buy below market. The profit is set on the day you buy, not the day you sell.
- 2
Price the repairs before you offer. Get a contractor's number, not an estimate of your own.
- 3
Do the work. Every extra month is another month of loan payments, taxes and insurance.
- 4
Sell. Price it against what actually closed nearby, not against what is listed.
- 5
Pay the tax. A flip is inventory, not investment property, so it does not qualify for a 1031 exchange.
Every flip starts with the ARV, what the house will be worth once it is fixed up. Take that number. Subtract everything you spend. What is left is your profit.
Example with round numbers
Look at the fourth line. In this example, holding and selling costs take $30,000, more than half the rehab budget.
Quick gut check
Should you flip at all?
If the second box worries you more than the first one excites you, start with a slower strategy.
Why people do it
- +Profit in months, not years
- +No tenants, no landlording
- +Forces you to learn the market fast
What can go wrong
- !Rehab runs over and eats the profit
- !The market cools while you hold it
- !Taxes and fees stack up faster than new flippers expect
Budget before the offer
The costs new flippers underestimate.
Purchase price and rehab are the obvious numbers. These six are quieter, and they eat the margin. Budget all of them before you make the offer, not after.
- ✓Loan interest. The loan charges you every month you hold the house.
- ✓Property taxes. Investment property is taxed at a higher rate than a home you live in; we run the real number for you.
- ✓Insurance. The house needs coverage the whole time you own it.
- ✓Utilities. Power, water, and trash keep billing through the rehab.
- ✓Closing costs. You pay a set of fees when you buy and again when you sell.
- ✓Deed recording fees. South Carolina charges a fee to record the sale when you sell.
Funding the flip
Fix and flip loans in Myrtle Beach
Most flips use a hard money loan. It is a short-term loan that closes quickly and can pay for part of the repairs. The rate is higher than a normal mortgage, so every extra month you own the house costs you money.
You do not have to shop for that loan. Our preferred lender, BrickWood Mortgage, offers fix-and-flip and bridge loans, so the purchase, the loan, and the repair budget are all planned together in one place.
BrickWood also finances new construction for investors, with less paperwork than most people expect. In most cases they do not need your income documents. They can approve the loan on the numbers of the deal: the finished house either makes money as a rental or sells for at least 10 percent more than it costs to build. Building a home to live in takes longer and has more requirements. Investor builds move faster.
Plan how you will sell before you buy. Homes here sell best in spring and summer, so try to finish the project before that season starts. Keep a backup plan too. If the house would make a good rental, refinance into a DSCR loan, which is approved on the property's rent instead of your tax returns, and keep it instead of selling. That approach is called BRRRR: buy, fix, rent, refinance, repeat.
Before you write the offer, run the address through the analyzer below to see if the rent would cover the house.
Let us help with your next investment.
Send us the address. We will run the rent, the expenses and the association documents before you write an offer, at no cost.
Call 854.333.2135Common questions
Frequently asked questions
Is fix and flip profitable in Myrtle Beach?
It can be, but the margins are thinner than the television version. Demand here is seasonal, so exit timing matters. Carrying costs, the higher investment tax rate, and selling costs all eat into profit. Disciplined buying and an accurate rehab budget decide the outcome.
How do I calculate flip profit?
Start with the ARV, what the house will be worth once it is fixed up. Subtract the purchase price, the rehab cost, every holding cost, and the selling costs. What remains is profit. Underestimating holding and selling costs is the most common mistake.
What financing do flippers use?
Most flips use a hard money loan, a short-term loan that closes quickly and can pay for part of the repairs. The rate is higher than a normal mortgage, so the faster you finish and sell, the more you keep.
What if my flip does not sell?
Always model a rental backup. If the resale market softens, refinance into a DSCR loan, which qualifies on the property's rent, and hold the house as a rental. That converts the flip into a BRRRR and gives the deal a floor. Our long-term rental analyzer shows whether it would cash flow.
When is the best time to sell a flip on the Grand Strand?
Resale demand is generally strongest heading into the spring and summer buying season. A flip that finishes in the slower months can sit. Time the completion to the selling season to protect the margin.
Does BrickWood finance new construction for investors?
Yes. BrickWood Mortgage finances ground-up construction for investors, in most cases without income documents: the loan can stand on the deal when the finished house cash flows as a rental or the numbers show it selling for at least 10 percent over the build cost. Primary-home construction loans take longer and involve more paperwork.
Can I do a 1031 exchange on a flip?
Usually no. A house bought to fix and resell is inventory, not investment property, and the IRS excludes property held for sale from 1031 treatment. If the exchange option matters to you, hold the finished house as a rental first and confirm the timing with a tax advisor. Our 1031 exchange guide covers the deadlines.