Question 1

How does the property tax reset change my flip math in Los Angeles County?

Accepted Answer

It works in your favor as the buyer, and it is the structural reason a Los Angeles flip is easier to underwrite than the seller's own tax bill suggests. California resets the assessed value to the purchase price on every change in ownership, so a property held by the same owner for decades may carry an assessment far below market. That seller's low tax bill is not comparable to what your exit buyer will pay: their assessment resets again the day they close, at whatever price you sell for. Budget your holding-period taxes off your own purchase price, roughly 1.1% to 1.4% of assessed value depending on Tax Rate Area and direct assessments, not off the number on the seller's disclosure. Talk to your CPA about your specific Tax Rate Area.

Question 2

Does Measure ULA apply to my flip exit?

Accepted Answer

Only if the property sits inside the City of Los Angeles and your sale price crosses the threshold; it does not reach the rest of the county at any price. Measure ULA is a City of Los Angeles tax, not a county tax. A flip in Long Beach, Pasadena, Glendale, Santa Clarita, Torrance, Inglewood, Lancaster or unincorporated county territory is not subject to it, full stop. Inside the city, effective for closings after 2026-06-30, the tax is 4% of the entire sale price above $5,400,000 and 5.5% at or above $10,900,000, on top of the ordinary $5.60-per-$1,000 city and county transfer tax. It applies to the whole price once you cross the line, not just the amount above it. The tax has been upheld on appeal, and proposed exemptions for new construction or for Palisades fire sellers are drafts, not law. Verify the exact threshold before you price an exit near it.

Question 3

What do I need to disclose to my buyer after rehabbing a Los Angeles flip?

Accepted Answer

Contractor-performed work, by name, if you sell within 18 months of taking title. California Civil Code section 1102.6h requires a seller of a 1-4 unit property who accepts an offer within 18 months of taking title to disclose any room additions, structural modifications, other alterations, or repairs performed by contractors, including the contractors' names and contact information, and permits may be attached. Keep contractor records and permits organized from day one of the rehab so the disclosure is a formality, not a scramble. Our fix and flip loan funds draws as the work completes, which gives you a running paper trail for this exact requirement.

Question 4

Can I count on rental income or an STR if a flip does not sell right away in Los Angeles?

Accepted Answer

Not as a short-term rental inside the City of Los Angeles, and not without checking the rent regime first anywhere else in the county. The city's Home-Sharing Ordinance limits short-term rentals to a host's own primary residence, occupied at least six months of the year, so a non-owner-occupied investor unit cannot lawfully be listed there. If your fallback plan is a longer-term rental instead, check which rent regime applies before you underwrite it: a pre-October-1978 City of Los Angeles building falls under the RSO, a different formula applies in unincorporated county territory, and several individual cities (Pasadena, Santa Monica, West Hollywood, Inglewood and others) run their own separate rules. The build date and the city line, not the address alone, decide which rule applies.

Question 5

Is a pre-1978 Los Angeles building I'm flipping subject to the seismic retrofit ordinance?

Accepted Answer

Only if it is a wood-frame soft-story or non-ductile concrete building that already received an Order to Comply, but check before you close. City of Los Angeles Ordinance 183893 requires retrofit of pre-1978 wood-frame soft-story buildings of two or more stories with ground-floor parking or other open space and more than three units, and of non-ductile concrete buildings. Orders went out in phases starting 2016-05-02, largest buildings first, with two years to submit proof of retrofit or plans, 3.5 years to pull the permit, and seven years to complete construction after the order issues. If you are buying a qualifying multifamily building, confirm its compliance status with LADBS before you underwrite the rehab budget: an open retrofit order is a separate capital obligation from your flip scope.

Question 6

Are Los Angeles County flip margins holding up in today's market?

Accepted Answer

No county-specific flip rate or ROI figure has been published for Los Angeles, so do not underwrite off a number that does not exist. This is a basis-and-bridge market rather than a high-yield one: gross rental yields on a straight purchase run roughly 2.5% to 4.7% across nearly the whole county, so a fast, well-priced flip depends on your entry discipline and your rehab scope rather than on market appreciation. Prices vary sharply by submarket, from the mid-$400,000s in Lancaster to well above $1.2 million in Pasadena and Glendale, so comp your specific submarket rather than a countywide average, and make your spread at purchase.

Question 7

How much do I need to bring to a Los Angeles fix and flip?

Accepted Answer

About 10% of the purchase, plus closing costs. We fund up to 90% of the purchase price and up to 100% of the rehab budget, capped to ARV, on a 6-month interest-only term. On a $500,000 Los Angeles purchase that is up to $450,000 from us and $50,000 from you (500,000 x 90% = 450,000), with rehab drawn against the schedule instead of paid up front. Entry prices swing hard across this county, from the mid-$400,000s in Lancaster to above $1.1 million in Pasadena and Glendale, so run the number on your own submarket rather than a countywide average. Subject to underwriting.

Question 8

My credit is not clean. Can I still fund a Los Angeles flip?

Accepted Answer

Usually yes. A fix and flip loan is an asset-based loan, so there is no minimum credit score on it. We do run credit, but it carries far less weight here than it would at a bank, and weaker credit is usually answered with lower leverage rather than a decline. There is no hard credit pull to start a conversation. What we underwrite instead is the property, the rehab scope, and the exit, which in this county means your entry discipline more than market appreciation. Subject to underwriting.

Question 9

Is my Los Angeles deal too small, or too large, for this loan?

Accepted Answer

We write from $100,000 to $5,000,000. At the low end, an Antelope Valley purchase in the mid-$400,000s clears the $100,000 minimum comfortably, so small does not mean unfundable. At the high end, the $5,000,000 ceiling is the one to watch on a Pasadena, Glendale or Westside project where the purchase and the rehab together can run up against it. Send the address and the scope and we will size it. Subject to underwriting.

Question 10

Do you fund a first flip in Los Angeles, or do I need a track record?

Accepted Answer

First-time flippers are welcome. A first project does not disqualify you, and the same up to 90% of purchase and up to 100% of rehab structure is on the table. What we look at is whether the scope, the budget and the ARV hold together. That matters more here than in most markets, because Los Angeles County stock is old enough that deferred maintenance and unpermitted work are the norm, so a first-timer's contingency needs to be real rather than a rounding line. Subject to underwriting.

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