Was this Park Circle property in a FEMA flood zone?

Zone X — no SFHA flood insurance required. Sponsor still ordered elevation and flood quote before close.

What leverage did the flip receive?

90% LTC on acquisition with 100% rehab in four draws — experienced sponsor with three prior Charleston exits.

What was net profit after carry?

Approximately $34,000 after 10.25% IO carry, 7% sale costs, and $4,200 contingency spend on sewer lateral.

North Charleston Park Circle Funded Flip Case Study

Item: Jaken Finance Group
Rating: 5
Author: Verified Borrower

Deal snapshot

Location	Park Circle, North Charleston, SC
Property type	1954 3/2 bungalow
Loan type	Fix-and-flip hard money
Loan amount	$282,000 all-in (90% LTC)
Close time	8 business days

Investor challenge

The sponsor needed 8-day close on a 1954 Park Circle bungalow with galvanized plumbing and an estate timeline. Banks declined for condition and speed; ARV had to be constrained to Park Circle comps — not peninsula premiums — while flood diligence had to be documented before permanent debt or resale.

Jaken Finance Group’s solution

Jaken Finance Group funded 90% LTC at 10.25% IO with four milestone draws and a 13-month term. Flood zone verification (Zone X), wind/hail insurance quotes, and sewer lateral contingency were modeled in carry before term sheet.

Outcome

Property resold at $322,500 in 38 DOM after $64,000 rehab — ~$34,000 net to sponsor after carry and 7% sale friction.

Charleston hub: hard money lenders Charleston · Charleston flood zone guide

Deal summary

Stage	Detail
Acquisition	$218,000
Rehab	$64,000
Resale	$322,500 at 38 DOM
Net spread	~$34,000

Spoke: hard money loans Park Circle

Rehab scope highlights

Line	Budget	Actual
Kitchen + baths	$22,000	$23,400
HVAC + electrical panel	$14,500	$14,500
Sewer lateral (unplanned)	$4,000 contingency	$4,200

Why flood diligence and comp discipline saved the margin

This flip profited on two decisions made before the offer. First, flood-zone verification: the sponsor confirmed Zone X (outside the FEMA special flood hazard area) and still pulled an elevation and flood quote. That meant no surprise insurance line and no SFHA financing friction — exactly the diligence banks wouldn’t underwrite on an 8-day timeline. Second, ARV restraint: comps were held to Park Circle sales, not peninsula premiums a few miles away. Anchoring to the right comp set is what kept the $322,500 resale realistic and the 38-day sale fast.

The deal also budgeted for the unknown. A sewer-lateral contingency ($4,000 planned, $4,200 actual) on a 1954 bungalow meant the galvanized-plumbing surprise didn’t eat the spread. Net result: ~$34,000 after 10.25% carry and 7% selling costs.

Takeaway in the Lowcountry: verify flood and insurance before the LOI, and comp to the neighborhood, not the metro — both are where Charleston flip margins quietly disappear.

Deal timeline

Week	Milestone
1	Contract — Park Circle walkable comp set confirmed
2	Hard money close — 90% LTC + rehab holdback
3–10	Kitchen/bath/systems draws per milestone inspection
11	Staging and list — O-O buyer pool targeted
12–14	Sale at contract price — payoff and fee settlement

Lowcountry diligence notes

Flood zone verified — X zone avoided AE insurance drag
Charleston County permit turnaround modeled at 3–4 weeks
Comp radius kept within Park Circle — no Daniel Island premium bleed
Hard money term sized to 14-week realistic exit, not optimistic 8-week

Park Circle rewards walkability narrative in ARV — but only when comps stay hyper-local. Price DOM + carry into IO budget before max leverage. Hub: hard money lenders Charleston.

Full profit stack

Line	Amount
Acquisition	$218,000
Rehab (actual)	$64,000
Sewer lateral overrun	$200
All-in	$282,200
Resale	$322,500
Gross spread	$40,300
IO carry (7 mo @ 10.25%)	−$16,800
Sale costs (7%)	−$22,575
Points / fees	−$4,900
Net to sponsor	~$34,000

Park Circle market context

Park Circle is North Charleston’s walkable restaurant and arts district — buyers pay for block-level walk score, not generic North Charleston median. 2026 distressed basis runs $200K–$240K on 1950s bungalows needing $55K–$75K systems-heavy rehabs. Zone X flood designation avoids SFHA insurance requirement but sponsors should still document elevation — buyers’ lenders will ask.

What would have killed this deal

Daniel Island comps in ARV — unsupported at resale
Skipping sewer lateral contingency on 1954 galvanized stock
8-week IO term on a systems-heavy scope — 14-week realistic
AE flood zone acquisition — insurance drag erases Lowcountry flip margin

Draw and permit timeline

Week	Milestone
1–2	Close + demo prep — galvanized scope confirmed
3–4	Kitchen/bath rough — Draw 1 released
5–7	HVAC + panel — Draw 2 after inspection
8–9	Sewer lateral repair — contingency deployed
10	Staging + photography
11–14	Listed — 38 DOM to contract

Charleston County permits ran 3 weeks on this file — sponsor sized IO term to 14 weeks minimum, not optimistic 8-week flip math. Systems-first draw sequencing kept the lender comfortable releasing holdback while galvanized plumbing was still open.

Zone X is a rating, not a guarantee

“Zone X” on a flood map can mean two different things. FEMA’s flood zone guide on FloodSmart describes them:

Map label	Risk level	What it usually means
B and X (often shown shaded)	Moderate	Usually between the 100-year and 500-year flood limits, or shallow flooding under 1 foot
C and X (often shown unshaded)	Minimal	Usually above the 500-year flood level
A, AE, and other A zones	High	Flood insurance mandatory for government-backed mortgages in participating communities

The same page notes that 1 in 3 flood insurance claims come from low- and moderate-risk zones. It recommends coverage outside high-risk areas even though it is not required by law.

For a flip, the practical effect lands on the resale buyer. Their insurer and lender will look at the same map and may quote coverage even in Zone X. Putting the elevation documentation and a current flood quote in the listing packet answers those questions before the buyer’s inspection period runs. That is part of why this house reached contract in 38 days. Read the Charleston flood zone financing guide for how zone changes affect leverage.

Selling a renovated 1954 house: disclosure duties

The estate seller likely handed over little paperwork. The investor reselling the house has a different duty.

South Carolina’s disclosure statute. Under S.C. Code § 27-50-40, the owner must give the buyer a written disclosure statement. It must cover, among other items, the water supply and sanitary sewage disposal system, plumbing, electrical, and heating and cooling systems, structural components, and known lead-based paint. Section 27-50-30 exempts certain transfers, including those by a fiduciary administering a decedent’s estate. A resale by an investor LLC is generally not on that list, unless both parties agree in writing to skip the statement.

On this file, the sewer lateral replacement and the galvanized plumbing work belonged on the disclosure with invoices attached. Documented replacement turns a 1950s risk into a selling point. Leaving it off invites a dispute after closing.

Federal lead disclosure on sale. For pre-1978 housing, EPA’s disclosure rule requires the seller to give the buyer a lead pamphlet and disclose known information before the contract is signed. Buyers must also get a 10-day opportunity for a lead inspection or risk assessment, unless they waive it or the parties agree in writing to a different period. Build those 10 days into the contract-to-close calendar so they do not collide with the loan term.

Charleston market check, fall 2026

Countywide numbers show why comp discipline matters here. Realtor.com data on FRED and BLS data:

Measure	Latest	Year earlier
Charleston County median listing price	$691,250 (Sep 2026)	$730,000 (Sep 2025)
Charleston County median days on market	63 (Sep 2026)	57 (Sep 2025)
Charleston County active listings	2,081 (Sep 2026)	2,101 (Sep 2025)
Charleston-North Charleston MSA unemployment, not seasonally adjusted	3.7% (Aug 2026)	4.2% (Aug 2025)

Sources: MEDLISPRI45019, MEDDAYONMAR45019, ACTLISCOU45019, and CHAR745URN.

The county median listing price is more than double this house’s $322,500 resale. Island, peninsula, and new-build inventory pull that median up. An ARV built from county averages, or from comps a few miles away, would have been unsupportable. Jobs data is steady, and listing counts are flat. A replay should still budget for about two months on market rather than the five-plus weeks this house needed.

Backup exit: would a hold have worked?

Every flip needs a fallback if the resale stalls. HUD’s FY 2026 Small Area Fair Market Rents put the three-bedroom benchmark for ZIP 29405 at $1,920.

Illustration (assumed 7.5% rate, 30-year schedule, $400 a month for taxes and insurance): A 75% refinance on $322,500 is about $241,875. Principal and interest run about $1,691, for a total near $2,091. At $1,920 rent, the ratio is about 0.92.

The hold would not have covered its payment at that leverage. That confirms the sale was the right primary exit. It also shows the fallback a sponsor would need: more cash in at refinance or a lower loan amount. Knowing that before closing is what lets you price the carry budget honestly.

What to hand the resale buyer’s agent

A complete packet shortens the buyer’s inspection period and keeps their lender moving. For a 1950s Park Circle flip, include:

The South Carolina disclosure statement, with sewer lateral and plumbing invoices attached
The signed federal lead disclosure and the pamphlet acknowledgment
The flood zone determination, elevation documentation, and a current flood insurance quote
Final permits and inspection sign-offs for electrical, HVAC, and plumbing
Warranty paperwork for the new HVAC system and water heater

Recording cost at resale

South Carolina charges a deed recording fee of $1.30 (state) plus $0.55 (county) for each $500 of value under S.C. Code § 12-24-10. On a $322,500 sale, that is about $1,193. Make sure it sits inside the 7% sale-cost line rather than surprising you on the settlement statement. For lender options on the next Lowcountry flip, see hard money loans in North Charleston.