Looking to buy a fixer-upper home in San Diego? Whether you're a first-time homebuyer or an experienced investor, purchasing a fixer-upper can be an exciting opportunity to secure a property at a lower price and transform it into your dream home. San Diego offers a variety of homes in need of renovation, from charming older houses in historic neighborhoods to properties with great potential in up-and-coming areas. In this guide, we’ll walk you through the process of finding, buying, and renovating a fixer-upper in San Diego, helping you navigate the challenges and make the most of this investment opportunity.

What is a Fixer-Upper Home?

A fixer-upper home is a property that requires significant repairs, updates, or renovations to bring it up to modern standards or to improve its condition. These homes may have issues such as outdated features, structural problems, or cosmetic damage that make them less appealing to buyers compared to move-in-ready homes. Fixer-upper homes are often priced lower than fully renovated homes, making them an attractive option for buyers willing to invest time, money, and effort into restoring or improving the property.

Why Choose a Fixer-Upper Home?

Choosing a fixer-upper home can offer several benefits, especially for those looking to invest time and effort into creating a personalized living space. Here are a few reasons why buying a fixer-upper might be a smart choice:

Lower Purchase Price: Fixer-uppers are typically priced lower than move-in-ready homes, allowing buyers to enter the housing market at a more affordable price point. In our analysis, fixers can be 16% less than “move-in ready” homes, and 40% less than renovated homes which are at the top of the market.
Potential for Increased Value: Renovating a fixer-upper can increase its value significantly. With the right improvements, the property can appreciate in value, offering a high return on investment.
Customization: Buying a fixer-upper gives you the opportunity to customize the home to suit your preferences, from layout changes to modernizing features and finishes.
Location Opportunities: You may find a fixer-upper in a desirable location that is otherwise out of reach due to the higher prices of fully renovated homes.
Less Competition: Since many buyers are deterred by the need for extensive renovations, there’s typically less competition for fixer-upper properties, giving you a better chance of negotiating a favorable deal.

While buying a fixer-upper can be a great opportunity, it’s not the right choice for everyone. If you prefer a move-in-ready home with minimal hassle, the renovation process may feel overwhelming. Fixing up a home requires time, energy, and financial investment, which can be challenging for those with tight schedules, limited budgets, or little experience in home improvement. Unexpected challenges—such as hidden structural issues, working with contractors, and navigating permit requirements—can create stress and delays. However, with Buildable, we make the process easy by handling everything from property evaluation to renovation execution, ensuring that your project stays on time and within budget. If your primary goal is to move in quickly, a fixer-upper might not be ideal—but if you’re open to customizing your dream home with expert guidance, we can make it a seamless and rewarding experience.

How to Find a Fixer-Upper Home in San Diego?

Here are some effective ways to find a fixer-upper home in San Diego:

Work with a Local Real Estate Agent: Work with a Local Real Estate Agent: A knowledgeable real estate agent can help you find off-market properties, understand local neighborhoods, and locate homes that need renovation. Buildable has experts on staff to assit with this, and evaluate the needs of a fixer before you put in an offer.
Look for Foreclosures or Short Sales: Properties in foreclosure or undergoing a short sale often sell at a lower price, making them prime candidates for fixer-uppers.
Browse Online Real Estate Listings: Browse real estate websites like Zillow, Redfin, and Realtor.com allow you to filter listings for homes that need work or are priced below market value.
Explore Older Neighborhoods: Target areas with older homes, as they may have more fixer-upper opportunities compared to newer developments.
Network with Contractors and Builders: Contractors may know of properties that need work or are being sold for renovation.
Check Estate Sales: Homes listed after estate sales can sometimes be fixer-uppers, especially if the seller’s family is selling due to inheritance or downsizing.
Use Investment Platforms: Websites and platforms that specialize in investment properties may offer fixer-upper listings specifically for investors.

What to Look for When Buying a Fixer-Upper in San Diego

When buying a fixer-upper in San Diego, the first thing to consider is the structural integrity of the home. Issues like foundation problems, cracked walls, or uneven floors can be costly to repair and may require professional evaluation. In San Diego, homes near the coast or in areas prone to soil shifting may be more susceptible to foundation issues, so it's crucial to get a thorough inspection to identify any hidden structural concerns. A solid foundation is key to ensuring that your renovation efforts are built on a stable base. Now, this may not be a problem at all – we just need to make sure that the sales price reflects the effort and costs required. We love these opportunities, because they scare most people away and we know how to fix it.

Next, you should assess the roof and exterior of the property. Roofs typically have a lifespan of 20 to 30 years, and replacing a roof can be a major expense. Look for signs of leaks, damaged shingles, or sagging in the roof structure. Also, examine the home’s siding, windows, and doors to check for any damage or wear that may need attention. Homes with outdated or inefficient windows may require upgrades to improve energy efficiency, which can be an additional cost to consider in your renovation budget.

The plumbing and electrical systems are also critical when purchasing a fixer-upper. Old plumbing systems, especially those made of galvanized pipes, can lead to leaks and water damage, requiring complete replacement. Similarly, outdated electrical systems may not meet modern safety standards and could pose a fire risk. It's essential to hire a licensed inspector to evaluate both plumbing and electrical systems to determine what needs to be updated or replaced, as these are high-cost upgrades that can significantly impact your overall renovation budget.

Another important consideration is the layout and functionality of the home. While cosmetic updates like new paint or flooring are easy fixes, more significant changes such as reconfiguring rooms or knocking down walls may require permits and structural modifications. Evaluate whether the current layout works for your lifestyle or if it needs to be restructured. Additionally, take note of how the home flows, and consider how improvements to the layout could enhance both the aesthetics and functionality of the space.

Lastly, consider the neighborhood and location of the fixer-upper. Even if a home requires significant work, its location in a desirable area can increase its long-term value and appeal. Research the neighborhood’s property values, amenities, schools, and overall growth potential. A home in a prime location may be worth investing in, as your renovations could lead to a significant return on investment. Always balance the renovation costs with the potential market value of the property after improvements to ensure you're making a wise financial decision.

By carefully evaluating these factors, you can determine whether a fixer-upper in San Diego is the right investment and ensure your renovation project is financially feasible and successful. At Buildable, we specialize in identifying high-potential properties and assessing the scope of work needed, helping you uncover diamonds in the rough and make informed decisions before you buy.

How To Buy A Fixer-Upper Home in San Diego

The following or the main steps to take when buying a fixer-upper home:

Define Your Budget: Set a clear budget for both the purchase price and the renovation costs. Factor in additional expenses such as permits, inspections, and unexpected repairs.
Get Pre-Approved for a Construction Loan: Secure financing before you start house hunting. Consider a construction or renovation loan if you need extra funds for repairs or upgrades. You will need a qualified builder who can execute the loan – so that should be sorted prior to looking at homes.
Work with a Local Real Estate Agent: Find an experienced agent who knows the San Diego market, can help you identify fixer-upper opportunities, and may have access to off-market listings.
Search for Fixer-Uppers: Look for fixer-uppers through online listings, foreclosure auctions, estate sales, or by driving through neighborhoods known for older homes that may need renovations.
Have Experts Perform Due-Diligence: Always get a professional builder to assess the home's structural integrity, plumbing, electrical, and overall condition to avoid costly surprises later. Buildable's model works because we have a fiduciary responsibility for the overall project. Getting "any general contractor" in to look at a home before you engage could result in the risk of offing you "foot in the door" pricing.
Evaluate the Property's Potential: Consider the scope of renovations needed, and determine whether it fits within your budget and the comparable value of other homes in the area.
Estimate Renovation Costs: Get detailed cost estimates from contractors for the work needed, including labor, materials, and any permits required for structural changes.
Negotiate the Purchase Price: Based on the renovation estimates, negotiate a price that accounts for the work required. Sellers may be more flexible on price when selling a home that needs repairs.
Close on the Property: Once the terms are agreed upon, finalize the purchase by closing the deal, completing the paperwork, and securing the financing.
Secure Necessary Permits: If you plan to make major changes, check with the city of San Diego for necessary permits and zoning regulations before starting renovations.
Begin Renovations: Start the renovation process according to your plan. Stay on top of progress, budgets, and timelines to ensure the project stays on track.

Financing Options For a Fixer-Upper Home in San Diego

Purchasing and renovating a fixer-upper in San Diego requires the right financing strategy to ensure a smooth and cost-effective process. Traditional mortgages may not cover homes in need of significant repairs, but specialized loans like construction loans and renovation mortgages provide flexible funding solutions. Here’s a breakdown of the best financing options available:

Construction-to-Permanent Loan

A construction-to-permanent loan is a great option for buyers planning extensive renovations. This loan provides short-term financing during the construction phase and automatically converts into a traditional mortgage once the renovation is complete. It covers both the home purchase and renovation costs, allowing buyers to finance their project with as little as 20% down. Instead of receiving all the funds upfront, the lender releases the money in stages (“draws”) based on project milestones, ensuring that work progresses according to the approved plan. Once the renovation is finished, the loan seamlessly converts into a standard 30-year mortgage, eliminating the need for additional refinancing.

Stand-Alone Construction Loan

A stand-alone construction loan is ideal for buyers who need short-term financing for renovations but plan to secure a separate mortgage later. Unlike a construction-to-permanent loan, this option does not automatically convert into a long-term mortgage, meaning borrowers must refinance or pay off the balance once the renovation is complete. While this loan is beneficial for major renovations or full home rebuilds, it typically comes with higher interest rates than standard mortgages. This financing option works well for buyers who want more flexibility in structuring their long-term financing after the renovation is complete.

Renovation Mortgage (Single-Close Loan)

A renovation mortgage, also known as a single-close construction loan, is a streamlined option that bundles the home purchase and renovation costs into a single loan. This financing approach eliminates the need for multiple closings, making the process more efficient. It allows buyers to finance renovations with as little as 20% down while benefiting from either fixed or variable interest rates, depending on the lender’s terms. Since this loan includes both the purchase price and renovation costs, it simplifies the financing process, reducing complexity and eliminating the need for separate loan approvals.

Which Loan is Right for You?

If you’re buying a fixer-upper and want a simple, all-in-one financing solution, a renovation mortgage is the most straightforward option. For projects that involve major renovations or a complete rebuild, a construction-to-permanent loan provides structured funding with the long-term security of a mortgage conversion. If you prefer more flexibility and plan to refinance later, a stand-alone construction loan may be the best fit.

At Buildable, we simplify the financing and renovation process by helping you secure the right loan, evaluate fixer-uppers, and execute renovations seamlessly

Buildable is Your Partner in Finding & Renovating a Fixer-Upper Home

At Buildable, we simplify the complex process of fixer uppers and development in California. Our team helps clients avoid costly mistakes and streamline the search and renovation process. Our mission is to guide our clients smoothly through their projects, helping to avoid common pitfalls while saving both time and money. From the outset, Buildable takes the lead, leveraging our network of reliable partners to ensure your project is not only completed within budget but also meets your timeline. From helping look for property to renovations and the final inspection, Buildable is your one-stop shop. To learn more about how we can assist you and to discuss your specific project needs, schedule a consultation with us here.

How to Find & Buy a Fixer-Upper in San Diego