San Jose is one of the most challenging cities in which to flip houses. The median home values are extremely high, and San Jose residents are reluctant to sell for fear they won’t be able to move back to the area. The home values in San Jose have increased dramatically in recent years, making the market highly competitive for house flippers.
San Jose and Silicon Valley has a growing population, many of which are transplants from all over the world.
San Jose is the considered the “Capital of Silicon Valley” and the city has a lower unemployment rate than the rest of the state. With a mild climate, and situated just south of San Francisco Bay, San Jose is in a prime location for people who like the outdoors in the midst of the tech scene.
Key San Jose House Flipping Statistics
| Population | 1,035,317 and 5 year growth rate of 5.6% |
| Income | Average Household Income of $117,474 and 5 year growth rate of 17.3% |
| Home Value | Average price of 3 bedroom 2 bath home of $1,070,000 and 5 year growth rate of 67% |
| Cost of Living | San Jose is 151.2 vs 100 for the U.S. cost of living index |
| New Home Starts | 8,362 |
Property Taxes in San Jose
Santa Clara County
For a home worth the median value of $701,000, the median property tax in Santa Clara County is $4,694 per year. On average, 0.67% of a property’s market value is paid as property tax.
Residents pay on average about 4.2% of their yearly income as property tax.
County of Santa Clara SCC Tax
https://payments.sccgov.org/propertytax
County of Santa Clara Department of Tax and Collections
https://www.sccgov.org/sites/dtac/Pages/default.aspx
Office of the Assessor Property Record Search.
Flood Zones in San Jose
Flooding in San Jose can occur near the Guadalupe River that runs through the downtown area to the San Francisco Bay.
San Jose Public Works Floodplain Management
http://www.sanjoseca.gov/index.aspx?NID=539
Association of Bay Area Governments GIS Map
http://gis.abag.ca.gov/website/Hazards/?hlyr=femaZones
FEMA Floodmap Service Center
https://msc.fema.gov/portal/search?AddressQuery=san%20jose%2C%20ca#searchresultsanchor
XXi21 San Jose Flooding Maps
https://www.xxi21.com/san-jose-california-flooding-map.html
San Jose Public GIS Viewer
http://csj.maps.arcgis.com/apps/webappviewer/index.html?id=3c5516412b594e79bd25c49f10fc672f
San Jose Crime Rates
| San Jose Crime Rate | 257.2 crime index versus 280.5 U.S. average |
San Jose Transportation
Autos
San Jose residents mostly depend on their automobiles for transportation.
The city has set an ambitious goal to shift motorized trips to walking, bicycling, and public transit in 2009 with the adoption of its Envision San Jose 2040 General Plan. However, this has so far failed to make progress. In 2018 the city extended these goals to 2050 with its San Jose Climate Smart plan.
Rail
Rail service to and from San Jose is provided by Amtrak.
Commuter rail services include Caltrain (commuter rail service between San Francisco and Gilroy), ACE (commuter rail service to Pleasanton and Stockton), and the local VTA light rail system connecting downtown to local communities such as Mountain View and Milpitas. This is operated by the Santa Clara Valley Transportation Authority (VTA).
BART
BART (Bay Area Rapid Transit) is being expanded from the North Bay region of Oakland to Santa Clara. This will run through Milpitas and San Jose from the current terminal in Fremont.
Bus
VTA operates bus routes in San Jose and the surrounding communities, including paratransit services to local residents.
Airports
San Jose is served by Norman Y. Mineta San Jose International Airport (SJC), just two miles northwest of downtown. San Jose residents also use San Francisco International Airport (SFO), a major international hub located just south of San Francisco, and Oakland International Airport (OAK). SJC is also near the intersections of three major freeways, U.S. Route 101, Interstate 880, and State Route 87.
Freeways
San Jose has an expansive freeway system, including three Interstate freeways and one U.S. Route.
U.S. 101 runs south to the California Central Coast and Los Angeles and north to the San Francisco Peninsula.
Like all major U.S. cities, traffic congestion can be an issue, but San Jose has several projects planned or underway to deal with this.
Bicycling
San Jose has been gradually expanding its bike lanes over the last decade.
Trail network
San Jose is has several major paved trails, such as the Guadalupe River Trail, and Coyote Creek Trail. These trails extend from near downtown San Jose to the north and south, and are connected with each other via bicycle routes. The city is planning extensions to these trails in the near future including the Three Creeks Trail and San Tomas Aquino Creek Trail.
Neighborhoods to Flip Houses in San Jose
East Murphy
This neighborhood averages $1,100,000 for home sale prices. The has plenty of nearby restaurants and nightlife and a family-friendly atmosphere.
Lakewood Village
This area has a median sale price of around $600,000 and has great access to the rest of San Jose and Silicon Valley. There are plenty of restaurants nearby and decent schools.
The Fairgrounds
The median home value for this area is $642,000. The neighborhood is just outside of downtown San Jose on the south side of the city. It has plenty of access to restaurants and nightlife and there are good nearby schools.
Edenvale-Seven Trees
This neighborhood has a median home value of $662,000 and is located on the south side of the city. There are many restaurants nearby and this neighborhood has easy access to the rest of Silicon Valley.
Hard Money Lenders in San Jose
San Jose Foreclosure Auctions
County of Santa Clara Sheriff’s Auctions
https://www.sccgov.org/sites/sheriff/Pages/auction.aspx
Santa Clara County foreclosure listings on Zillow
https://www.zillow.com/santa-clara-county-ca/foreclosures/
Superior Court of California, County of Santa Clara Foreclosure / Probate Sales FAQ
http://www.scscourt.org/self_help/probate/faqs/foreclosures.shtml
Santa Clara Superior Court Listing of Newspapers of General Circulation
http://www.scscourt.org/forms_and_filing/forms/PB-4000.pdf
San Jose Title Searches
County of Santa Clara Office of the County Clerk / Recorder Records Search
https://www.sccgov.org/sites/rec/services/Pages/records-search/records-search.aspx
County of Santa Clara Office of the County Clerk / Recorder
Recording (Real Estates, Deeds, Liens, & Judgments)
https://www.sccgov.org/sites/rec/services/Pages/recording/recording-home.aspx
County of Santa Clara Office of the County Clerk / Recorder Researching Official Documents
https://www.sccgov.org/sites/rec/services/Pages/officials/research-doc-home.aspx
San Jose Zoning
San Jose Zoning Map
http://www.sanjoseca.gov/index.aspx?NID=2037
San Jose Envision San José 2040 General Plan
http://www.sanjoseca.gov/index.aspx?NID=1737
City of San Jose ARGIS Land Use Zoning Map
City of San Jose Public GIS Viewer
http://csj.maps.arcgis.com/apps/webappviewer/index.html?id=3c5516412b594e79bd25c49f10fc672f
San Jose Search for Permit, Property or Zoning Information
https://sjpermits.org/permits/general/combinedquery.asp
County of Santa Clara SCCMap
https://ges.sccgov.org/discovergis/sccmap
San Jose Building Code and Permits
City of San Jose Search for Permit, Property or Zoning Information
https://sjpermits.org/permits/general/combinedquery.asp
San Jose House Flipping Tips
Do’s
Consider selling to a professional real estate buyer who can handle the process quickly and effectively, so as to avoid long delays. Do this even if it means dropping the price of the property slightly.
Don’ts
Don’t purchase a home needing major fixes that require large amounts of capital and time. Buy homes that mostly need cosmetic repairs and can be quickly completed. Large renovation projects could mean not being able to sell the property quickly. Also, a buyer of your property can be the one to do some of the repairs, as long as they are minor.
What to Look Out For
Look out for what buyers in the area are actually looking for and improve the property to match these requirements.
Real Estate Flipping and Investing Groups in San Jose
San Jose Real Estate Networking Club
SJREI
San Jose House Flipping Outlook
San Jose is in a prime location for people who like the outdoors and the mild climate of the Santa Clara Valley, with abundant Silicon Valley jobs.
The city is located at the heart of Silicon Valley and has a lower unemployment rate than the rest of the state. San Jose has a growing population, many of whom come from outside the area looking to buy homes.
The home values in San Jose have increased dramatically in the last 20 years, making the market extremely competitive for house flippers. House flipping in San Jose has to be timed well with economic cycles. Home supply is very low and incomes are very high, making the up-front investment significant.