San Diego flips are big-ticket projects. With high purchase prices, a mid-century ranch in Clairemont or a Craftsman in North Park can need a loan well above most metros, and adding an ADU has become one of the main ways investors build value.
In short: LendingStreet finances fix and flip projects across San Diego County 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 San Diego, plan for Prop 13 reassessment, coastal and historical review where they apply, and permit time for ADUs.
North Park, South Park, Normal Heights and Kensington have 1920s Craftsman and Spanish revival homes with strong resale demand. Clairemont, Serra Mesa and Linda Vista are known for 1950s and 1960s ranch homes that flip well, and City Heights, Encanto, Lincoln Park and Valencia Park offer lower entry prices.
In the rest of the county, Chula Vista, National City, El Cajon, La Mesa, Lemon Grove, Spring Valley and Santee have more moderately priced homes, and Escondido, Oceanside and Vista in North County add more options.
| Area | Typical housing | Common rehab scope |
|---|---|---|
| North Park, Normal Heights, Kensington | 1920s Craftsman and Spanish revival | Systems, foundations, period details |
| Clairemont, Serra Mesa | 1950s-1960s ranch homes | Kitchens, baths, layouts, ADUs |
| City Heights, Encanto | Older small homes | Full updates, electrical, ADUs |
| El Cajon, Chula Vista, Escondido | 1960s-1980s tract homes | Cosmetic updates, roofs, HVAC |
Drywood termites are common in Southern California, and tenting for fumigation is a routine step in older homes. Older houses may also need new electrical panels, sewer laterals and foundation work.
Adding an accessory dwelling unit, either a garage conversion or a new detached unit, is a popular value-add in San Diego, helped by state ADU laws. ADUs add time for plans and permits, so build that into your hold period.
Our fix and flip program covers single-family homes and 2 to 8 unit buildings, with loans from $150,000 to $5M+. Depending on the program, financing can reach 90% of the total project cost and 100% of the renovation budget, and closings can happen in as little as 10 days.
You pay interest only while you own the property. Renovation funds are released through a draw process after each stage of work is inspected, rather than all at once. 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 1950s ranch in Clairemont that needs a kitchen, two baths, an opened layout, new electrical and a roof. The purchase price is $860,000, the rehab budget is $140,000 and the after-repair value, based on renovated sales nearby, is $1,180,000.
At 90% of the purchase price plus 100% of the rehab, the loan is $914,000, about 77% of the after-repair value. The estimated monthly interest-only payment on the full loan is about $7,998, and the plan is a 6-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 $20,115 on roughly $163,285 of cash invested. If the sale takes three months longer than planned, added interest and carrying costs of about $27,892 would cut the profit to about $-7,778, which is why a realistic timeline matters as much as the rehab number.
| Item | Amount |
|---|---|
| Purchase price | $860,000 |
| Rehab budget | $140,000 |
| Loan (90% of price + 100% of rehab) | $914,000 |
| Estimated monthly interest-only payment | $7,998 |
| Interest over 6 months | $47,985 |
| Taxes, insurance and utilities | $7,800 ($1,300 a month) |
| Buy-side closing costs (estimate) | $21,500 |
| Selling costs (about 7%) | $82,600 |
| Sale at after-repair value | $1,180,000 |
| Estimated profit | $20,115 |
| Cash invested (down payment, closing, carry) | $163,285 |
The City of San Diego's Development Services Department issues building permits inside city limits, and Chula Vista, El Cajon, Escondido and other cities run their own departments. Unincorporated areas fall under San Diego County.
Properties in the Coastal Overlay Zone may need a coastal development permit for some work. In the City of San Diego, permits on older buildings can trigger a historical resources review, which can add time to exterior changes or major remodels.
Under Prop 13, the property is reassessed at your purchase price when you buy, and a supplemental tax bill usually follows. San Diego County charges a documentary transfer tax on sales. Ask your escrow officer for the exact figures on your purchase and resale.
Homes near canyons and brush face higher wildfire exposure, and California's insurance market has tightened. Get insurance quotes early, and know that the state's FAIR Plan exists as a fallback.
Our California fix and flip page covers the program statewide.
When the work is done, you can list the property and pay off the loan at closing, or you can lease it and refinance into a DSCR loan with a 30-year term available, qualified on the rent rather than W-2s or tax returns.
San Diego rents are high but so are prices, so a DSCR refinance often works better on homes with an added ADU. See the local DSCR loan page for how those loans size.
The more of this you have on day one, the sooner we can size the loan and schedule closing.
We finance investor rehabs throughout San Diego County. Share the deal basics, including price, scope, budget and timeline, and the team will review the file and lay out the loan amount and next steps.
Request a quote with the form below or call (877) 298-1001.
Yes, ADU additions can be part of the rehab budget. Plan for design and permit time, and confirm setbacks and utilities first.
Yes. Under Prop 13 the property is reassessed at your purchase price, and a supplemental tax bill usually follows.
They can. Properties in the Coastal Overlay Zone may need a coastal development permit for some work. Check before you plan exterior changes.
Fix and flip loans run from $150,000 to $5M+, so higher-priced San Diego projects fit within the program, subject to review.
Fix and flip loans run from $150,000 to $5M+ on 1 to 8 unit investor properties.
It is held back at closing and released in draws as work is completed and inspected.
Yes. Many investors refinance into a DSCR loan that qualifies on the property's rent, with no W-2s or tax returns.
Yes. LLC borrowers are standard on our investor loans.
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