Hi Jack,
My name is Jason, I own and operate Alto Property Solutions, which is a company that manages flips for local and out-of-state investors. I also flip myself whenever I find a lucrative enough deal.
Margins:
In my opinion, you should aim for at least a 30% ROI—especially on your first project. Even with your dad's experience behind you, there will be a learning curve, and those early mistakes can be costly. A healthy margin gives you the cushion you need while you're getting your bearings.
Subs vs. DIY:
Always use subcontractors unless construction is something you’ve done professionally. If you haven’t worked in the trades, it’s almost always better to let the pros handle it. Nothing slows down a sale more than buyers being able to tell a house was flipped. Clean, professional workmanship makes a massive difference in how fast a property moves.
Timeline:
Ideally, think in terms of 90 days: about 30 days for renovations, 30 days on market, and 30 days for escrow. Renovation scope will shift this, of course, but a helpful rule of thumb is $1,000 in reno cost = about 1 day of work. So a $30k reno should take roughly 30 days, a $90k reno around 90 days, and so on.
A quick note here: good subs are your lifeline. When you have a reliable team, you can complete a $90k renovation in 40–50 days, which becomes a huge competitive advantage and a major profit booster.
Lending:
This part varies a lot because so much depends on interest rates. If you have the ability to use cash, do it—it keeps your costs predictable and avoids interest eating into your returns. If you need to borrow, make sure you’re choosing whatever option costs you the least in interest.
Be cautious with partnerships. If you do go that route, only partner with someone you genuinely trust, and make sure every detail is clearly outlined in a contract drafted by an attorney. A bad partner can derail a good project quickly.
Biggest Obstacle:
For most first-time flippers, the renovation phase is the toughest. Unexpected issues that turn into added costs are the number-one profit killer of flips, in my experience. Some surprises are unavoidable, but you can mitigate a lot of them by doing two things:
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Get an extremely thorough inspection. Many “unforeseen” issues are actually things that could’ve been caught upfront with more diligence. Inspect more than once if needed, and bring your GC, electrician, or a trusted partner to get multiple sets of eyes on the property.
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Add at least a 10% buffer to your renovation budget. This gives you breathing room when—not if—you run into a surprise. Even with a ton of experience and dialed-in reno numbers, I still build this buffer into every flip I do.
If you ever want to talk through a deal or run numbers together, feel free to let me know, I’m happy to help!
