fix and flips still possible in southern california with todays market?

Investor · San Diego, CA · Member since 2024 · 28 posts · 15 votes

I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?

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Bradley BuxtonBusiness Member

Real Estate Agent · NV · Member since 2023 · 1k+ posts · 720 votes

@Arshiya Taami

There are still opportunities but they will be harder to find and at higher price points. There is a lot of competition in CA and while a great appreciation market gone are the gold rush days of the last 10 years so the strategy has to get more creative. That's why I bought in the Reno, NV / Tahoe area. It's relatively affordable, strong tech and industrial job growth, landlord friendly, low property taxes, and not state income tax. It's all depends on your goals and how you can adapt your strategy.

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Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 720 votes
2y
@Arshiya Taami
There are still opportunities but they will be harder to find and at higher price points. There is a lot of competition in CA and while a great appreciation market gone are the gold rush days of the last 10 years so the strategy has to get more creative. That's why I bought in the Reno, NV / Tahoe area. It's relatively affordable, strong tech and industrial job growth, landlord friendly, low property taxes, and not state income tax. It's all depends on your goals and how you can adapt your strategy.
1 Reply
Keith Mintz
Real Estate Agent · San Diego, CA · Member since 2023 · 189 posts · 88 votes
2y
Quote from @Arshiya Taami:

I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?
There’s definitely good deals still just harder to find, and get connected with the right people! I have a few I’m looking into at the moment. If you want I can send them your way too to take a look at.
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Arshiya Taami
OP
Investor · San Diego, CA · Member since 2024 · 28 posts · 15 votes
2y
Quote from @Keith Mintz:

Quote from @Arshiya Taami:

I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?
There’s definitely good deals still just harder to find, and get connected with the right people! I have a few I’m looking into at the moment. If you want I can send them your way too to take a look at.

that would be great! just send a message keith
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Account Closed
Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes
2y
Did you find any new info on flipping in SoCal?
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Account Closed
Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes
2y
Did you find any new info on flipping in SoCal?
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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
2y
I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.
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Account Closed
Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes
2y
Quote from @Corby Goade:

I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.

Well you cant BRRRR at 7% interest rate in a market that pays 3% Cap Rate on rentals.
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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
2y
Quote from @Account Closed:

Quote from @Corby Goade:

I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.

Well you cant BRRRR at 7% interest rate in a market that pays 3% Cap Rate on rentals.

Sure you can. I just finished one at 7.785%. Besides, there are no cap rates on residential real estate- you refi based on comps, not NOI.
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Account Closed
Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes
2y
Quote from @Corby Goade:

Quote from @Account Closed:

Quote from @Corby Goade:

I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.

Well you cant BRRRR at 7% interest rate in a market that pays 3% Cap Rate on rentals.

Sure you can. I just finished one at 7.785%. Besides, there are no cap rates on residential real estate- you refi based on comps, not NOI.
Of course you can refi, but you wont be able to do a full cash our with rent covering your mortgage so you can keep rolling the funds to next project.
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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
2y
Quote from @Account Closed:

Quote from @Corby Goade:

Quote from @Account Closed:

Quote from @Corby Goade:

I've been investing for 25 years and everyone who has reletively little experience always thinks you can't invest, flip, brrrr, whatever, in their market. The fact is, you can do any of those in ANY market. When home prices go up, so do ARVs and gross profits. There's never been a time in history where building equity through adding value wasn't possible, that's just stinkin' thinkin'.
That being said- processes and quality matter greatly and thats where most people lose their shorts, not on the actual deal.

Well you cant BRRRR at 7% interest rate in a market that pays 3% Cap Rate on rentals.

Sure you can. I just finished one at 7.785%. Besides, there are no cap rates on residential real estate- you refi based on comps, not NOI.
Of course you can refi, but you wont be able to do a full cash our with rent covering your mortgage so you can keep rolling the funds to next project.

That's odd, because I could have pulled an extra $35K out over and above my out of pocket expenses.
It's absolutely possible anywhere. If you don't think so, you are missing opportunites.
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Jo-Ann LapinPro Member
Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
2y
Yes , for sure . Inventory is low . SoCal is getting a lot older and most 20 plus old homes need updates and perhaps a value add addition. As rates increase there will be more opportunity .
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Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
2y
Quote from @Arshiya Taami:

I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?

Yes, still very possible to find flips and flip properties in SoCal. You need to be exact on your ARV and know your rehab costs... That will lead to what you need to buy it for since every market is different pricing for repairs always change.
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Brian Koons
San Diego, CA · Member since 2019 · 48 posts · 44 votes
2y
They're definitely still possible. San Diego is a VERY competitive market, so most of the "deals" are found by someone thats not you. However, that just means theres strength in the relationships. Focusing on the network can be a very powerful strategy in this market.
1 Reply
Robert Evans
Member since 2024 · 1 post · 0 votes
2y
Quote from @Arshiya Taami:

I am an Investor and do fix and flips. I was wondering if in todays market, are fix and flips still possible to do and will make you money in southern california?

I have 3 properties in SD for sale.
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