Fire Sprinklers in a Southern California Flip

[Jeff S.]

This was a new one for us. After a Downey inspector told some of our borrowers they could close the walls on a rehab, he came back a few days later apologizing he had to tell them that they had to install a fire sprinkler system!! This was a busted flip they bought gutted to the studs and I estimate it was initially built in the 1960’s, so it was far from new.

These guys are unbelievably experienced, with nothing to prove, and I know they didn’t’ do anything to annoy the inspector. Yes, they could have fought the city and might have won. At some point both the holding and opportunity costs would have killed them, so they decided to just bite the bullet to the tune of about $6k and quickly move on.

I know some cities are requiring fire sprinklers in new construction. But flips? My question to those of you flipping in southern California is, other than Downey, and I was also told Alhambra, what southern California cities are requiring sprinklers in a rehab? This will help us protect ourselves and our borrowers. Thanks.

Jeff