Question 1

Where in San Diego County does a fix and flip actually pencil?

Accepted Answer

Look inland and south bay, not the coast. Mid-tier value across the metro runs roughly $1,000,000 and has drifted down 0.6% to 1.7% year over year, so a flip here has to be won on the purchase price, not on appreciation. Pre-1980 housing, the stock with the real rehab margin, is 49.5% of the county's housing units, concentrated in El Cajon, Escondido, Spring Valley and National City rather than the higher-basis coastal submarkets.

Question 2

How do I underwrite property taxes on a San Diego flip?

Accepted Answer

Never underwrite off the seller's tax bill. Proposition 13 resets the assessed value to your purchase price at closing, and San Diego County's ad valorem rate runs from 1.01903% to 1.28664% depending on the tax rate area, with a 25-basis-point spread inside the City of San Diego alone worth about $2,500 a year on a $1,000,000 purchase. A house held since the 1990s can carry a fraction of what it costs at today's price, so pull the parcel's own TRA rate and apply it to what you are paying, not to the listing's stated annual taxes.

Question 3

What does California's flip disclosure law require before I sell?

Accepted Answer

If you accept an offer within 18 months of taking title on a 1-4 unit property, state law requires you to disclose any room additions, structural modifications, other alterations, or repairs done by contractors. Along with contractor names and contacts, attaching the permits is allowed and worth doing. Build that disclosure into your exit timeline the same way you budget for rehab, and if your exit is a straight contract assignment rather than a rehab, our transactional funding can fund the same-day close on the other end.

Question 4

Do Mello-Roos taxes affect a flip in the south bay?

Accepted Answer

They can, and they show up outside your tax rate area calculation entirely. Community Facilities District special taxes in eastern Chula Vista and parts of unincorporated north county are fixed charges, not tied to assessed value, so Proposition 13's cap never touches them. A parcel there can stack several thousand dollars a year of district and school-bond charges on top of the ordinary ad valorem bill. Pull the parcel's actual fixed charges from the county tax bill before you price a flip in Otay Ranch or a similar master-planned district, since it changes what a buyer's carrying cost looks like at resale.

Question 5

What will I pay in transfer tax when I sell a San Diego flip?

Accepted Answer

The state's documentary transfer tax base is $1.10 per $1,000 of the sale price, and the City of San Diego does not add a charter-city surcharge on top of it the way Los Angeles or San Francisco do. On a $1,000,000 exit that is $1,100. That add-on has not been confirmed against the San Diego Municipal Code, so have escrow confirm the current City schedule before you rely on the number. A county-level transfer tax increase has been under study by the Board of Supervisors, so confirm current rates with your title company before you close, but no proposed rate or threshold has been adopted.

Question 6

What credit score do I need for a fix and flip loan in San Diego?

Accepted Answer

There is no minimum score on this program. We do run credit, but on an asset-based loan it carries far less weight than it would at a bank. The purchase price, the rehab budget and the ARV do most of the work. Weaker credit is usually handled with lower leverage rather than a decline, so a thinner file may come in under the 90% of purchase ceiling instead of at it. There is no hard credit pull to get started. San Diego County's spread has to be manufactured at the purchase price, so the numbers on the parcel matter more here than the score does. Subject to underwriting.

Question 7

How much do I need to bring to a San Diego flip?

Accepted Answer

About 10% of the purchase, plus closing costs and carry. 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 $1,000,000 San Diego purchase that is up to $900,000 from us and $100,000 from you (1,000,000 x 90% = 900,000), with the rehab drawn against the schedule rather than paid up front. Mid-tier value across the metro runs roughly $1,000,000 and has drifted down 0.6% year over year, so carry a real contingency on top of that. Subject to underwriting.

Question 8

Can I get a San Diego fix and flip loan on my first project?

Accepted Answer

Yes. First-time flippers are welcome here. The same terms apply: up to 90% of purchase, up to 100% of rehab capped to ARV, and a 6-month interest-only term. A first file gets a closer look at the budget and the exit than a tenth one does, and leverage is the lever we use when a file is thin. Start where the rehab margin actually is, in the pre-1980 inland and south bay stock rather than the higher-basis coastal submarkets. Subject to underwriting.

Question 9

Is there a minimum loan size for a fix and flip in San Diego?

Accepted Answer

We lend from $100,000 to $5,000,000 on this program. The floor almost never binds in this county, where mid-tier value runs roughly $1,000,000. The ceiling is the number to watch: a coastal project at that basis can push the $5,000,000 cap once the rehab budget is added, since we size to 90% of purchase plus up to 100% of rehab against ARV. Send the address and the scope and we will tell you plainly whether it fits. Subject to underwriting.

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