Local market • San Diego, CA

House Flipping Calculator for San Diego, CA

Strong year-round demand and limited supply; high entry costs offset by a premium resale buyer pool for quality renovations.

Worked example: the 80% rule in San Diego

With a median home price around $950,000 in San Diego, a flipper using a 80% of ARV rule would target a maximum offer near $646,000 on a property worth $950,000 after repairs with roughly $114,000 of rehab. The classic 70% rule is too conservative here — at a $950,000 ARV, a flat 70% would price you out of nearly every deal. Fixed transaction costs are a smaller share of a high ARV and competition compresses margins, so San Diego flippers underwrite closer to 80%.

After-repair value (ARV)$950,000
Estimated rehab (≈12% of ARV)$114,000
80% of ARV$760,000
Maximum allowable offer (MAO)$646,000

These are illustrative figures. Run the actual numbers — comps, true rehab scope, holding costs, financing — in the FlipOS deal analyzer for an accurate MAO.

A more accurate MAO: work backward from your costs

The percentage rule is just a shortcut for the real formula — subtract every cost and your target profit from the ARV:

MAO = ARV − rehab − closing − holding − selling − target profit

After-repair value (ARV)$950,000
Rehab (≈12% of ARV)$114,000
Buy / closing costs (≈2%)$19,000
Holding costs (≈3%)$28,500
Selling costs (≈6.5%)$61,750
Target profit (≈9% of ARV)$80,750
Maximum allowable offer (MAO)$646,000

Notice this lands on the same $646,000 as the 80% rule above — the rule just bakes these costs into one number. The trade-off it hides: a higher ARV percentage means a thinner profit margin (9% here), which is exactly why competitive markets like San Diego accept tighter spreads. Always confirm rehab, holding, and selling costs for the specific deal.

What flippers should know about San Diego

Strong year-round demand and limited supply; high entry costs offset by a premium resale buyer pool for quality renovations. As with any market, the headline median price masks wide variation block-to-block. Pull comps inside a one-mile radius (or tighter in urban submarkets), and confirm rehab costs with at least two local contractors before committing.

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