A Santa Fe flip lives or dies on the roof you cannot see from the street. Flat roofs, parapets and old stucco hide water damage that a pitched-roof market never deals with, and buyers here know to ask.
In short: LendingStreet makes fix and flip loans on 1-8 unit investor rehabs in Santa Fe and across Santa Fe County. Loans run from $150,000 to $5M+, cover up to 90% of total cost and up to 100% of rehab on some programs, and can close in as little as 10 days. They are short-term and interest-only, and you exit by selling or refinancing into a DSCR loan.
The steady supply of flips comes from Santa Fe's midcentury neighborhoods: Casa Alegre, Casa Solana, Bellamah and the streets around St. Michael's Drive, where 1950s to 1970s Pueblo-style and ranch homes have original kitchens, tired roofs and dated systems. Older adobe homes near downtown and on the Eastside come up as well, often from estates, but they carry higher prices and historic-district rules.
Buyers on the other end range from local professionals and state employees to retirees and second-home buyers from out of state. Out-of-state buyers in particular expect a finished, low-maintenance house with an updated roof, a modern kitchen and efficient heating and cooling.
Flat roofs need a full assessment: membrane or coating age, parapet caps, canales and any ponding. Water that gets behind stucco can rot framing or soften adobe walls. Many older homes have radiant floor heat from an aging boiler, evaporative coolers instead of refrigerated air, and electrical panels that need replacement. Homes built before 1978 may have lead-based paint, which requires lead-safe work practices when disturbed.
Kiva fireplaces, vigas and latillas, nichos and brick or flagstone floors are features buyers pay for, so a good rehab often restores them rather than covering them up.
Much of central Santa Fe sits inside historic districts, where exterior changes such as windows, doors, roof parapets, stucco color and additions are reviewed by the city's Historic Districts Review Board and staff. Review adds time, and some changes are not allowed. Outside the districts, the city's building permit process still applies to structural, electrical, plumbing and mechanical work.
Build review time into your schedule and your interest budget, and confirm with the city's Historic Preservation Division before promising buyers new windows or an addition.
This example is illustrative and not a quote. An investor buys a 1960s Pueblo-style home in Casa Alegre for $395,000. The $85,000 rehab includes a new roof membrane and parapet repair, stucco patching and color coat, a new kitchen and bathrooms, refrigerated air and a panel upgrade. The after-repair value is $585,000.
The loan covers 90% of the $480,000 total cost, or $432,000: the full $85,000 rehab, released in draws, plus $347,000 toward the purchase, about 88% of the price. Over a 6-month hold, estimated interest-only payments total about $22,680.
After a sale at $585,000 and about $40,950 in commissions and closing costs, the investor nets roughly $35,370 after repaying the loan and recovering the $54,000 brought to the purchase, before taxes, insurance and utilities during the hold.
| Item | Amount |
|---|---|
| Purchase price | $395,000 |
| Rehab budget | $85,000 |
| Total cost | $480,000 |
| Loan (90% of cost) | $432,000 |
| Cash at purchase incl. closing | $54,000 |
| Estimated interest, 6 months | $22,680 |
| Sale costs | $40,950 |
| Estimated profit | $35,370 |
Santa Fe sits around 7,000 feet, and winter brings freezing nights and snow. Stucco and roof coatings need warm, dry weather to cure, so exterior work is easiest from late spring through early fall. Interior work continues year-round. Skilled stucco, adobe and plaster trades can be booked out, so line them up early, and remember that New Mexico gross receipts tax applies to most construction services and should be in your budget.
Spring and summer are the strongest selling seasons, when second-home buyers visit.
If the finished house has a casita or room for a legal second unit, it may make more sense as a rental. You can refinance into a DSCR loan once it is leased. Keep in mind that taxes reset to market value after a sale in New Mexico, and the payment has to clear the DSCR minimum on Santa Fe's high prices; our Santa Fe DSCR page shows why a casita helps.
Santa Fe values vary sharply from one neighborhood to the next, and even within a neighborhood, a home with mountain views, a portal and a walled courtyard can sell for far more than one without. Pull recent sales of renovated homes with similar style, lot and views, not just the same square footage. Second-home buyers pay for character and turnkey condition; local buyers pay for function and efficient systems.
Days on market lengthen in winter, so a house finished in November may sit until the spring visitors arrive. Budget interest accordingly.
Terms depend on experience, the property and the scope.
Send the address, price, scope of work, roof and stucco findings, and your after-repair value with comparable sales through the form below, or call (877) 298-1001. Tell us if the property is inside a historic district so we can plan the timeline with you.
Our investor loans are business-purpose loans on non-owner-occupied property. For flips elsewhere in the state, see our New Mexico fix and flip page.
Up to 90% of total cost and up to 100% of rehab on some programs, depending on your experience and the deal.
Yes. Plan for design review on exterior changes, which adds time and can limit what you can change.
Water damage from flat roofs and parapets, often hidden behind stucco. Get a roof and moisture inspection before closing.
New Mexico gross receipts tax generally applies to construction services. Include it in your rehab budget.
In as little as 10 days with a complete file, clear title and insurance bound.
Yes. Many investors refinance into a DSCR loan once the property is leased.
Yes. We lend in Eldorado, Rancho Viejo, Española, Los Alamos and across New Mexico.
No. Our flip loans are business-purpose loans on non-owner-occupied investment property.
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