By Remade Home Construction
Seasoned investors know San Diego never truly “cools”—it evolves. As we close out 2025, the county’s median single-family price hovers around $1.0–$1.1M, with inventory climbing modestly (now ~3–4 months supply in many submarkets) and days on market stretching into the 30–50 range in non-prime pockets. ATTOM’s latest data shows nationwide flipping margins compressed to ~25% ROI before expenses—the lowest in 17 years—and California flips are feeling the same squeeze from higher acquisition costs and softer exit comps.
Yet for experienced players, this is prime hunting season. Motivated sellers (relocations, empty-nesters unlocking low-rate equity, tired landlords) are finally negotiating, while structural demand from tech/biotech/defense hiring remains rock-solid. At Remade Home Construction, we’ve partnered on 100+ high-yield projects countywide—many with seasoned investors like you—and these are the five strategies delivering the strongest risk-adjusted returns right now.
1. Shift from Pure Flips to Forced-Appreciation Holds (The New Math)
Pure flipping still works in the right zip, but the margin buffer has thinned dramatically.
- National gross flipping profit: ~$65,000 (Q2 2025)
- Typical hold: 6–9 months → carrying + reno costs now eat 40–50% of that on a $1.2M ARV deal
Smarter play: Buy the fixer at 68–72% of ARV (easier in today’s market), execute a full Coastal Remade transformation, add an ADU, then refinance and hold 3–7 years. Cash-out refi at 75–80% LTV often pulls most/all of your original capital back out tax-free, leaving you with positive cash flow and 5–8% annual appreciation baked in.
We’ve seen investors clear $800k–$1.2M total equity creation on Encanto/Valencia Park deals using this exact model.
2. Maximize Post-2025 ADU Rules – The Caps Create Urgency & Opportunity
San Diego’s June 2025 ADU reforms are now in effect (Coastal Zone pending 2026 certification):
- Hard caps: 4–6 total units per lot under the old Density Bonus program
- New “Community Enhancement Fees” on bonus units
- But state law still guarantees one detached ADU + one JADU by-right, <750 sq ft units remain impact-fee exempt
Translation for pros: The unlimited-ADU party is over, but the window to lock in maximum density on existing inventory is closing fast. Target properties entitled under old rules or in unincorporated county where caps are looser.
Our sweet spot: 8,000–12,000 sq ft lots in City Heights, Linda Vista, or eastern Chula Vista—add a 1,000–1,200 sq ft detached 2-bed ADU + 500 sq ft JADU during the main-house remodel. Instant $400k–$600k equity lift + $5,500–$7,500/month gross rent potential.
3. Small Multifamily + Value-Add in Emerging Corridors
With institutional capital chasing 100+ unit deals (and paying sub-4.5% caps), the 4–12 unit space is wide open—and yields 5.5–7% untrenched are realistic after forced appreciation.
Hot zones we’re closing deals in right now:
- Greater North Park / City Heights (strong rent growth, transit proximity)
- Eastern Chula Vista / Otay Ranch edges (new infrastructure, family renters)
- Barrio Logan / Logan Heights (arts-driven revitalization, proximity to downtown jobs)
- Mira Mesa “tech alley” pockets (Asian-American buyer/renter demand, expanding employers)
Strategy: Buy tired 1960s–1980s 4–8 plexes, bundle seismic + energy upgrades with unit turns and one or two backyard ADUs. Push rents 25–40% and refinance in 18–24 months.
4. Build-to-Rent Hybrids: Horizontal Multifamily with ADU Stacking
Savvy groups are assembling 2–4 contiguous SFR lots in Clairemont, Serra Mesa, or San Carlos, scraping, and building 4–8 detached townhome-style units (each with its own small ADU). End result: 8–16 doors on land that used to hold 2–4 houses.
Benefits:
- No apartment-style HOA headaches
- Individual metering = lower owner expense
- Higher per-sq-ft rents than traditional apartments
- Easier resale as individual fee-simple units if you ever want to exit
5. Resilience as a Premium Feature (The Feature That Pays You Twice)
San Diego buyers and renters will pay 8–15% premiums for:
- Buried Powerwalls + full-home generators
- Heat-pump HVAC + whole-house water filtration
- Fortified roofing + automatic wildfire shutters
- Seismic auto-gas shutoffs + foundation bolting
Bundle these into your scope and you compress days-on-market while justifying top-of-comp rents/sale prices. SDG&E rebates + federal ITC still cover 40–60% of the resilience package cost.
The Bottom Line for 2026
The easy money is gone, but the sophisticated money is thriving. Focus on deals where you manufacture equity through density (ADUs), efficiency (energy/resilience upgrades), and duration (hold periods that let appreciation + rent growth do the heavy lifting).
At Remade Home Construction, we live this every day—full entitlement navigation, cost-certain GMP contracts, and Coastal Remade designs that command premium rents and resale velocities.
Ready to structure your next high-multiple deal? Let’s talk numbers—no fluff, just pro formas and off-market opportunities.
remadehomeconstruction@gmail.com | Email us for a Free Seasoned Investor Strategy Session
Remade Home Construction – Partnering with San Diego’s sharpest investors to build generational wealth, one resilient coastal compound at a time. 🌊💰
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