Thinking about buying a fixer in San Bernardino to build equity or flip for profit? You are not alone. The right property at the right price can deliver strong returns, but surprises with permits, repair costs, or comps can erase your margin fast. In this guide, you will get a simple, repeatable framework tailored to San Bernardino so you can estimate ARV, manage bids and timelines, model true costs, and choose the best exit. Let’s dive in.
Start with ARV basics in San Bernardino
Choose the right comps
Your ARV depends on buyers in the same micro-neighborhood. Focus on 3 to 6 closed sales from the last 3 to 6 months within about a half to one mile of the subject. Match key features like gross living area, bed and bath count, parking, lot size, and year built. If inventory is thin, you can widen the time window, but use more conservative adjustments.
Look for renovated comps if you plan to deliver a similar finish. Be careful with properties near major corridors or noise sources. Proximity to freeways or commercial uses can lower ARV, while a quiet interior block can support stronger prices. Keep your radius tight to the immediate sub-market.
Calculate a conservative ARV
Use price per square foot from your best comps and adjust for differences. A simple approach is:
- ARV = average adjusted price per square foot for your comp set multiplied by the subject’s living area, plus or minus net adjustments for lot or features.
- Alternatively, adjust each comp to the subject and average the adjusted sale prices.
Be conservative. If your comps show a range, lean to the lower end for flips. A safer ARV protects your margin against cost overruns or a slower sale.
Budget repairs by scope
Break your rehab into line items so bids are comparable and you can track changes. Typical categories include:
- Demo, framing and structural, roof, exterior paint and siding, windows and doors, HVAC, electrical, plumbing
- Kitchen and baths, flooring, interior paint, trim, lighting and fixtures, appliances
- Landscaping, fencing, driveway and hardscape, curb appeal
- Permits, inspections, trash and cleanup, and final punch
Include allowances for finishes. Only use higher-end materials if your ARV supports them. Hold a contingency of 10 to 20 percent of hard costs, especially for older homes or when utilities are off.
Build the full profit model
Your profit is what is left after every cost tied to acquisition, rehab, holding, and sale. A simple model:
- Projected Profit = ARV − (Purchase price + Repair costs + Holding costs + Financing costs + Closing costs + Selling commissions + Other fees).
- Track Return on Cost = Profit divided by (Purchase price + Repair costs).
- Watch Gross Margin as a quick filter: (ARV − (Purchase price + Repair costs)) divided by ARV.
Include these line items:
- Purchase closing costs and prorations
- Agent commissions on resale, typical totals in California are often 5 to 6 percent
- Staging, photography, and marketing
- Permit and inspection fees
- Contingency reserve for unknowns
Use conservative timelines and assume some overruns. Run base and worst-case scenarios before you write the offer.
Local rules that shape ROI
Permits and inspections
San Bernardino County Development Services and Building and Safety oversee permits and inspections. Structural changes, electrical, plumbing, HVAC upgrades, roof replacements, and major kitchen or bath remodels typically require permits. Most permitted work requires staged inspections for rough-in and final sign-off.
Plan review times range from days to weeks for minor items, and several weeks to a few months for complex projects or anything that needs engineering. Unpermitted work must be disclosed in California and can complicate financing and resale. Buyers may ask for proof that permits were closed, so plan to finish and document all permit sign-offs before listing.
Zoning, overlays, and ADUs
Verify the property’s zoning and setbacks with the City of San Bernardino Planning Department. Check for overlays like flood, hillside, or historic areas that can affect your exterior scope or permit path. If you plan an accessory dwelling unit, confirm allowed use, coverage, and parking requirements before you price the deal.
Taxes and assessments
Under Proposition 13, base property taxes are roughly 1 percent of assessed value in California, with added local assessments. Expect total bills to exceed 1 percent. A change of ownership can trigger reassessment. Confirm parcel taxes and proration with the San Bernardino County Assessor and Tax Collector.
REO realities in this market
REO properties are often sold as-is with limited disclosures and can come with utility shutoffs, missing appliances, boarded windows, or title issues. Banks may require proof of funds or pre-approval and sometimes use fixed processes like sealed bids. Price for unknowns, try to keep an inspection contingency where possible, and verify title early. If the home is occupied after foreclosure, factor in the added time and cost to deliver possession.
Vet contractors and manage the rehab
Get detailed, comparable bids
Request line-by-line bids that separate labor, materials, permits, and allowances. Each bid should define what is included and excluded. Ask for specific makes, models, and material specs. Get two to three bids for major trades to spot outliers.
Verify licenses and insurance
Check license status and any disciplinary history with the California Contractors State License Board. Ask for proof of general liability and workers’ compensation. Request recent references, neighborhood project photos, and a sample contract.
Set payments and protect against liens
Avoid large upfront payments. Use a small deposit, progress draws tied to milestones, and hold a final retainage until inspections and closeout. Use conditional and unconditional lien waivers at each draw and keep clean payment records to reduce mechanic’s lien risk.
Build realistic timelines
Cosmetic rehabs often take 4 to 8 weeks. Kitchen and bath updates with systems work can run 8 to 16 weeks. Structural changes or additions can run 4 to 6 months or more. Weather, inspection backlogs, and change orders add time, so include slack in your schedule.
Close permits before you list
Final inspections and sign-offs reduce buyer friction and help avoid delays at escrow. Make permit closeout a defined deliverable in your contractor’s scope.
Financing, carrying costs, and your exit
Financing options and tradeoffs
- Cash is fast and simple but ties up capital.
- Conventional rehab loans exist, but lenders can limit scope and require strong qualifications.
- Hard-money or rehab lenders are common for flips. Expect higher rates and fees, interest-only payments, and draw inspections.
- Construction lines of credit fit larger projects but require documentation.
Choose financing based on speed, cost, and complexity. Be realistic about draw timing and lender reserves.
Model carrying costs clearly
Include interest, property taxes, hazard insurance, utilities and security, HOA dues if any, and property management if you plan to hold. For vacant properties, confirm insurance requirements and premiums. Use a base holding period of 3 to 6 months and stress test 6 to 12 months to see impact.
Selling costs and timing
Budget agent commissions, escrow and title fees, cleaning, staging, and possible concessions. Marketing time varies by sub-market in San Bernardino. Interior blocks near amenities with strong comp depth tend to move faster than outlying pockets. Match your ARV and timeline to the immediate neighborhood.
Sensitivity test and find break-even
Run scenarios with ARV lower by 5 to 15 percent, repair costs higher by 10 to 25 percent, and days-to-sale at 30 to 180. Track the minimum ARV needed to hit your target ROI and the maximum repair budget you can carry at a given purchase price.
Plan your exit upfront
- Flip and resell for a short hold when ARV is clear.
- Rent and hold when cash flow supports it and you want depreciation and long-term upside.
- Wholesale or assign when you want minimal rehab risk and faster cash, knowing profit is smaller.
Talk with a CPA about entity choice and taxes. Short-term flips are typically taxed at ordinary income rates.
Due diligence checklist
Use this checklist before you write and after you are under contract:
Pre-offer:
- Drive the block at different times and confirm your comp set is from the same micro-neighborhood.
- Pull preliminary comps and verify lot size, year built, and prior sales in public records.
- Scan for roof wear, signs of foundation movement, and grade or drainage issues.
- Verify zoning and any overlays with the city or county planning staff.
Under contract:
- Order full inspections: general, roof, termite, and sewer scope where possible.
- Get itemized contractor estimates and ask Building and Safety about permit needs if scope is unclear.
- Review title, HOA status and CC&Rs if applicable, and search for liens or judgments.
- Confirm utility status, meters, and any shutoffs.
- Verify property taxes and special assessments with the county.
- Check for unpermitted additions using public permit records.
What makes a fixer worth it here
A good San Bernardino fixer has a clean path to permits, a realistic rehab scope, comps that support your finished product, and a purchase price that leaves room for contingency and carrying costs. The weaker the comps, the more conservative you need to be.
- Prioritize tight, recent comps and use conservative ARV.
- Budget the full scope with a 10 to 20 percent contingency.
- Build in realistic timelines and plan for inspection scheduling.
- Price in unknowns on REO assets and verify title early.
If the numbers still work after your worst-case scenario, you likely have a solid opportunity.
Work with a local, REO-savvy team
If you want experienced guidance on fixers, REOs, and value plays across San Bernardino, you are in the right place. The Vasquez Group blends decades of transactional experience with institutional REO and HUD know-how and local neighborhood expertise across San Bernardino County. We speak English and Spanish to make the process smoother for you and your partners.
Ready to underwrite your next fixer or get eyes on a property’s permit and resale path? Connect with Misael Vasquez for a straightforward plan and next steps.
FAQs
How do I estimate ARV for a San Bernardino fixer?
- Use 3 to 6 recent, nearby renovated comps, adjust for features and location, and lean to the low end of the range for a conservative ARV.
Do I need permits for cosmetic work in San Bernardino County?
- Basic paint and flooring often do not require permits, but structural, electrical, plumbing, HVAC, roofing, and window replacements usually do.
What contingency should I hold for older homes in the city?
- Plan 10 to 20 percent of hard costs, with the higher end for older properties, unknown utilities, or suspected rot or pest damage.
How do REO properties change the fixer strategy locally?
- Expect limited disclosures, as-is sales, possible utility shutoffs, and title or occupancy issues, so price for unknowns and verify title early.
What financing options work best for fixers here?
- Many investors use hard-money rehab loans for speed, while others use cash or conventional rehab programs depending on qualifications and scope.
How long do San Bernardino cosmetic vs major rehabs take?
- Cosmetic projects often run 4 to 8 weeks, moderate kitchen and bath plus systems run 8 to 16 weeks, and major structural projects can exceed 4 to 6 months.
