Sacramento flips usually start with a 1950s ranch or a 1920s bungalow, a hot-summer HVAC upgrade and a kitchen that has not been touched in decades, and they end with California disclosures and two layers of transfer tax inside the city.
In short: LendingStreet finances fix and flip projects across the Sacramento region on 1 to 8 unit investor properties, from $150,000 to $5M+. On some programs we cover up to 90% of total cost and up to 100% of the rehab, close in as little as 10 days and keep payments interest-only. In Sacramento, plan for Prop 13 reassessment, city and county transfer taxes and a tight insurance market.
Oak Park, Tahoe Park, Elmhurst and Curtis Park have early twentieth century bungalows and cottages close to downtown, with Curtis Park, Land Park and East Sacramento at the top of the price range. North Sacramento, Hagginwood and Del Paso Heights offer lower entry prices and a mix of condition.
Arden-Arcade, Carmichael, Citrus Heights, North Highlands and Rancho Cordova have large stocks of 1950s through 1970s ranch homes that form the core of the flip market. Natomas and Elk Grove have newer tract homes, and Roseville and Rocklin in Placer County are higher-priced suburbs.
| Area | Typical housing | Common rehab scope |
|---|---|---|
| Oak Park, Tahoe Park, Elmhurst | 1920s-1940s bungalows and cottages | Systems, foundations, kitchens |
| Arden-Arcade, Carmichael, Citrus Heights | 1950s-1970s ranch homes | Kitchens, baths, HVAC, roofs |
| North Sacramento, Del Paso Heights | Small older homes | Full updates, electrical, exterior |
| Natomas, Elk Grove | 1990s-2000s tract homes | Cosmetic updates, flooring, fixtures |
Summers are hot and dry, so buyers expect efficient central air, good insulation and dual-pane windows. Many older homes have undersized or aging HVAC and electrical panels that need replacing. Older bungalows can have raised wood floors over crawlspaces with settling and pest damage.
Natomas sits in a flood basin protected by levees, and flood insurance requirements there depend on current FEMA maps. Foothill suburbs to the east face more wildfire exposure, which affects insurance availability.
A LendingStreet flip loan can fund both the purchase and the renovation of a 1 to 8 unit investor property, from $150,000 up to $5M+. Some programs lend up to 90% of total cost and up to 100% of the rehab, and we can close in as little as 10 days when the file is ready.
The loan is short term and interest-only. Rehab money sits in a holdback and is paid out in draws as each phase passes inspection. Our investor loans are business-purpose loans on non-owner-occupied property.
This example is illustrative and not a quote. An investor buys a dated three-bedroom 1960s ranch in Carmichael that needs new HVAC, a kitchen, two baths, flooring, windows and a roof. The purchase price is $375,000, the rehab budget is $80,000 and the after-repair value, based on renovated sales nearby, is $560,000.
At 90% of the purchase price plus 100% of the rehab, the loan is $417,500, about 75% of the after-repair value. The estimated monthly interest-only payment on the full loan is about $3,653, and the plan is a 5-month hold. For simplicity the example assumes the full loan amount accrues interest for the whole hold.
After an estimated 7% in selling costs, the projected profit is about $34,159 on roughly $69,141 of cash invested. If the sale takes three months longer than planned, added interest and carrying costs of about $13,359 would cut the profit to about $20,800, which is why a realistic timeline matters as much as the rehab number.
| Item | Amount |
|---|---|
| Purchase price | $375,000 |
| Rehab budget | $80,000 |
| Loan (90% of price + 100% of rehab) | $417,500 |
| Estimated monthly interest-only payment | $3,653 |
| Interest over 5 months | $18,266 |
| Taxes, insurance and utilities | $4,000 ($800 a month) |
| Buy-side closing costs (estimate) | $9,375 |
| Selling costs (about 7%) | $39,200 |
| Sale at after-repair value | $560,000 |
| Estimated profit | $34,159 |
| Cash invested (down payment, closing, carry) | $69,141 |
Inside city limits, the City of Sacramento's Community Development Department issues building permits; unincorporated areas such as Carmichael and Arden-Arcade fall under Sacramento County, and Elk Grove, Citrus Heights and Rancho Cordova have their own offices.
California requires sellers to give buyers detailed disclosures, including a transfer disclosure statement, so keep records of all work and permits. If you hold as a rental in the city, Sacramento's rental housing inspection and tenant protection programs apply, along with state rent rules.
Under Prop 13, a property is reassessed at the purchase price when it sells, and a supplemental tax bill usually follows. Base the tax line on your purchase price, not the seller's older assessed value.
Sacramento County charges a documentary transfer tax on sales, and the City of Sacramento adds its own transfer tax on top for properties inside city limits. California's insurance market has tightened, with some owners turning to the state's FAIR Plan, so get quotes before you close.
The California fix and flip page has more on the program across the state.
Decide before closing whether you plan to sell or hold, and test both. A sale repays the flip loan from the proceeds. A refinance into a DSCR loan replaces the short-term loan with long-term financing based on the property's rent, which is a useful backup if resale prices soften.
Sacramento rents are lower relative to prices than in many inland metros, so test the DSCR carefully before relying on a refinance exit. See the local DSCR loan page for how those loans size.
Lenders look at the deal, the budget and the plan. Gather these before you request terms.
Our team reviews the purchase, the rehab budget, the after-repair value and your exit for 1 to 8 unit projects in Sacramento, Placer, Yolo and El Dorado counties. Clear budgets and realistic timelines get the quickest answers.
Start with the form below, or call (877) 298-1001 if you want to talk through a property first.
Yes. Under Prop 13 the property is reassessed at the purchase price, and you will usually receive a supplemental tax bill. Use your price for the tax estimate.
Yes. The City of Sacramento adds its own transfer tax on top of the county's for properties inside city limits. Unincorporated areas pay only the county tax.
It can, especially in foothill areas with wildfire exposure. Get quotes during escrow, and know that the state's FAIR Plan exists as a fallback.
Yes. We finance 1 to 8 unit investor rehabs across the region, subject to normal review.
Yes, up to 8 units. Buildings with 9 or more units are commercial and are handled under our commercial and multifamily programs.
No. The rehab portion is released in draws after each phase of work is inspected.
You sell and repay the loan from the proceeds, or refinance into a long-term DSCR loan if you keep the property as a rental.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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