San Diego’s ARV Calculations

[Toure Brady]

I'm trying to find San Diego real estate investors that fix and flip? I'd like to find out if they are using the 70% rule when calculating ARV or has the number changed for the San Diego market?

[Nicole Holcomb]

San Diego is an expensive market so adhering to the 70% rule is extremely difficult. I just read a report yesterday that the median home price is now above $600,000. To keep to the 70% rule you would need to buy below $400,000 to achieve the median ARV of $600,000.

When I am buying a property to flip I choose a target profit dollar amount I am aiming for. By looking for properties to purchase that could net me $50,000, many more options come available. When my husband and I buy, we do a lot of the work ourselves so we are able to save on rehab costs. In addition I am a Realtor so we save money there. My formula for finding a deal looks considerably different from the standard 70% rule.