In San Francisco, the renovation itself is rarely the hard part. The calendar is: permits, neighborhood notice and inspections decide how many months of interest a flip carries.
In short: LendingStreet finances San Francisco fix and flip projects on 1 to 8 unit investment properties from $150,000 to $5M+, with up to 90% of cost and up to 100% of rehab on some programs. Loans are short-term and interest-only, rehab funds are released in draws, and closings can happen in as little as 10 days. Exits are a sale or a refinance into a long-term DSCR loan.
Typical projects are dated single-family homes in the Sunset, Parkside, Excelsior, Portola and Bayview, and tired two-unit buildings in Bernal Heights, Glen Park and Noe Valley. Many are estate or long-hold sales with original kitchens, knob-and-tube wiring, failing foundations or old galvanized plumbing.
Buyers at resale expect finished, permitted work. In this market, a renovation without permits finaled by the Department of Building Inspection (DBI) can stall a sale or cut the price, so the permit plan belongs in the budget from day one.
Resale buyers in the western and southern neighborhoods are often families who want a third bedroom, a second bath and parking. Projects that add those features within the existing envelope, without triggering a full Planning review, tend to deliver the best ratio of value added to months spent.
Interior work such as kitchens, baths and like-for-like system upgrades can often be permitted over the counter or with a short plan review at DBI. Work that changes the exterior, adds square footage, adds a unit or digs out a garage level usually goes through the Planning Department, and some projects trigger neighborhood notification under Section 311.
That notice period and any discretionary review request can add months. Ask a local architect or permit expediter which path your scope will take before you settle on a purchase price.
This example is illustrative and not a quote. An investor buys a dated Portola home for $1,100,000 and plans $260,000 of interior and systems work under an over-the-counter permit. The loan covers 85% of the purchase and 100% of the rehab, for $1,195,000, which is about 88% of total cost.
Interest is charged on drawn funds, so the rehab portion builds up over the project. Over a 9-month hold, estimated interest is about $83,869. After transfer tax, holding and selling costs, a sale at $1,700,000 leaves an estimated profit of about $94,531. The investor's cash in at closing is about $203,000.
| Line item | Amount |
|---|---|
| Purchase price | $1,100,000 |
| Renovation budget | $260,000 |
| Total project cost | $1,360,000 |
| Loan (85% of purchase plus 100% of rehab) | $1,195,000 |
| Loan as a share of cost | 88% |
| Estimated interest, 9 months, on drawn funds | $83,869 |
| Purchase closing costs and transfer tax (estimate) | $38,000 |
| Taxes, insurance, utilities while holding | $21,600 |
| Selling costs (estimate) | $102,000 |
| Sale price (after-repair value) | $1,700,000 |
| Estimated profit before income tax | $94,531 |
The city's real property transfer tax is tiered and rises with the sale price, and it applies on the way in and, depending on the contract, on the way out. On a seven-figure flip it is a real line item, not a rounding error. Confirm the current tiers with the Assessor-Recorder and settle in the contract who pays.
Plan for a supplemental property tax bill too. Under Prop 13 your purchase resets the assessed value, and the supplemental bill can arrive mid-project.
Rehab money is released in draws after an inspector confirms completed work. In San Francisco, line up the draw schedule with DBI inspection milestones, such as rough framing, rough electrical and plumbing, insulation and final, so each draw matches a stage the city has signed off.
A detailed line-item budget with a contingency gives the draw process a clean structure. Older homes almost always reveal something behind the walls: undersized framing from early additions, settled foundations on sand in the western neighborhoods, or old sewer laterals that need replacement before the sale.
A contingency of 10% to 15% of hard costs is common on prewar San Francisco homes. If you do not use it, the money is simply not drawn and you do not pay interest on it.
Not every San Francisco project should be sold. A finished two-unit building or a condo near transit can make sense as a rental, especially if one unit can be leased at market. In that case, the exit is a refinance into a DSCR loan qualified on the new leases.
Remember that pre-1979 multi-unit buildings fall under the Rent Ordinance, so a unit leased after the rehab will carry rent-control limits for that tenant going forward.
We look at your track record, the scope, the after-repair value support and your contractor. First-time flippers can qualify on some programs with a strong team and a realistic budget, but large structural or expansion projects usually need prior experience.
The after-repair value has to be supported by recent sales of finished homes nearby, not by the best sale in the district. In a city of micro-markets, a block can matter, so pick comparables carefully.
Send the address, price, scope and target timeline through the form below, or call (877) 298-1001. We will size the loan, map the draws and show how holding time changes your return. Our California fix and flip page covers statewide terms.
Up to 90% of total cost and up to 100% of the rehab budget on some programs, depending on experience, scope and the after-repair value.
They are short-term and interest-only. Build the term around your permit path; projects needing Planning review should allow extra months.
Not always, but we want a clear permit plan. Purchasing with permits already issued, or with over-the-counter scope, reduces timeline risk.
Yes, if the project is permitted and the budget and timeline reflect it. Added units often go through Planning and take longer.
It is negotiable and set by the contract. Budget for it on purchase and confirm the current tiers with the city.
Yes. Many investors refinance into a DSCR loan qualified on the new leases instead of selling.
In as little as 10 days with a complete file, a clean title report and an appraisal ordered early.
On some programs, yes, with a licensed and insured contractor, a realistic budget and a cosmetic or systems scope. Structural and expansion work usually calls for prior experience.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.