First Fix-and-Flip – Looking for Advice (and Possibly a Mentor) in SoCal / Las Vegas
Member since 2025 · 13 posts · 2 votes
First Fix-and-Flip – Looking for Advice (and Possibly a Mentor) in SoCal / Las Vegas
Most Popular Reply
Adam KingBusiness Member
Real Estate Agent · San Diego, CA · Member since 2023 · 87 posts · 45 votesHi @Juan Robles,
Having done quite a few flips, my biggest advice for your first one is don’t underestimate the value of proximity. You’ll likely be at the property far more often than you expect. A 30-minute drive versus a 5.5-hour drive to Vegas is a massive difference when a contractor doesn’t show up, materials are wrong, or you need to make a quick decision.
A few other things I’ve learned:
- Expect it to consume more of your time than you think. Managing the GC, subs, materials, inspections, surprises, and timeline can become a job of its own.
- Know your market extremely well. Southern California and Vegas are very different markets. For a first flip, I’d rather know one neighborhood exceptionally well than chase what looks like a better spread somewhere unfamiliar.
- Finding good contractors is often harder than finding financing. Vet them carefully, check their work, and don’t assume the cheapest bid will produce the cheapest project.
- Deals come from relationships. Talk to agents, wholesalers, investors, property managers, neighbors, and even door knock. Some of my best opportunities have come from simply knowing and talking to the right people.
- Finding a lender is relatively easy. Talk to investors who are actively doing the type of flips you want to do. Most will happily tell you who they use if that lender has treated them well.
- Be cautious of anyone immediately trying to sell you something. Especially expensive mentorships, “exclusive” deal sources, or anyone promising easy returns.
With $100K, I’d focus less on maximizing the size of your first deal and more on finding something close to home, with a straightforward renovation, conservative ARV, plenty of contingency, and multiple exit strategies.
Your first flip doesn’t need to be a home run. Getting through the entire process successfully and learning how all the pieces actually work is valuable in itself.
Adam King - NewTown Real Estate522 Reviews
23 Replies
- 1moKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
Luis Minero is in las vegas and he would be a good mentor. He used to be on here but i dont think he is any more. Maybe find him on facebook. Ive worked with him before.
- Member since 2025 · 13 posts · 2 votes1mo
@Kerry Noble Jr Thanks for the recommendation Kerry.
- 1moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 954 votes
Quote from @Juan Robles:
Hi everyone,
I’m getting ready to do my first fix-and-flip and would really appreciate advice from people who have experience in the Southern California or Las Vegas markets.
A few details about my situation:
- Target markets: Southern California and/or Las Vegas
- Capital I can contribute: up to $100,000
- Looking for a solid first deal (not trying to swing for the fences)
- Open to partnering if the right opportunity and team are there
I’m especially interested in hearing:
- What a realistic first deal looks like in these markets right now (purchase price range, rehab budget, expected ARV, timeline, etc.)
- Common pitfalls new investors run into on their first flip
- Recommended strategies for finding deals, contractors, loan options, and lenders in SoCal / Vegas
- Any red flags I should watch for
If anyone is open to mentoring or answering a few questions as I go through the process, that would be greatly appreciated — not a requirement, just a bonus if someone’s willing.
Thanks in advance for any insight. Looking forward to learning from this community.
Juan Robles
For a first flip, I’d keep the goal simple: buy with enough margin that the deal still works if the rehab runs over budget or the resale takes longer than expected. I’d also compare SoCal and Vegas with Midwest markets before committing the full $100K, since the lower entry costs can give you more room to learn without putting as much capital at risk. Whatever market you choose, spend just as much time vetting your contractor, lender, and comps as you do finding the property.
- Member since 2025 · 13 posts · 2 votes1mo
@Arman Ahmed Thanks for the response. I was looking into the SoCal / Vegas options since I live in San Diego and these markets would be the easiest for me to actually visit and I have knowledge of the areas. From what I have been gathering, an out of state deal would be viable when partnering with the right people.
- 1moAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
Juan, for a first flip I would rather see a simple property with plenty of margin than a complicated project with a big projected profit.
I would be conservative on the ARV and rehab from day one. Use recent renovated sold comps, get multiple contractor bids, include a real contingency, and account for financing, utilities, insurance, permits, property taxes, commissions, closing costs, and extra holding time. Then run the deal again assuming the rehab costs more and the resale comes in lower. If the profit disappears quickly, there probably is not enough cushion.
Your mentor should also be someone who is willing to challenge the deal, not someone whose income depends on you buying it. I would build relationships with a strong agent, contractor, lender, title or escrow team, and CPA before you are under pressure to close.
From the tax side, flips are generally an active business activity, so I would not underwrite the profit as though it automatically receives long-term capital gain treatment. If you begin doing flips consistently and the profits grow, an S-Corp may be worth evaluating for the active business income, but I would not create one automatically before the numbers justify it.
With up to $100K available, protecting your capital on deal #1 matters more than trying to maximize the return.
Happy to connect!
INVESTOR FRIENDLY CPA®5240 Reviews- Member since 2025 · 13 posts · 2 votes1mo
@Ashish Acharya Thanks for the response. Sent you a message, let's stay connected.
- 1moGregory AcsPro MemberLender · MD · Member since 2025 · 212 posts · 84 votes
For a first flip, I'd be more focused on controlling your downside than maximizing your upside. It's easy to underestimate renovation costs and timelines, so I'd build a healthy contingency into both before making an offer. A deal that still works if the rehab takes longer or costs more than expected is usually a much better first project than one that only works if everything goes perfectly.
- Member since 2025 · 13 posts · 2 votes1mo
@Gregory Acs Thanks for the response. I am targeting deals that would require minimal rehab work, ideally cosmetic upgrades as apposed to structural. Though, it is understood that sometimes the skeletons show themselves in the middle of a project. That last sentence is gold and I am going to post it on my wall.
- 1moAdam KingBusiness MemberReal Estate Agent · San Diego, CA · Member since 2023 · 87 posts · 45 votes
Hi @Juan Robles,
Having done quite a few flips, my biggest advice for your first one is don’t underestimate the value of proximity. You’ll likely be at the property far more often than you expect. A 30-minute drive versus a 5.5-hour drive to Vegas is a massive difference when a contractor doesn’t show up, materials are wrong, or you need to make a quick decision.
A few other things I’ve learned:
- Expect it to consume more of your time than you think. Managing the GC, subs, materials, inspections, surprises, and timeline can become a job of its own.
- Know your market extremely well. Southern California and Vegas are very different markets. For a first flip, I’d rather know one neighborhood exceptionally well than chase what looks like a better spread somewhere unfamiliar.
- Finding good contractors is often harder than finding financing. Vet them carefully, check their work, and don’t assume the cheapest bid will produce the cheapest project.
- Deals come from relationships. Talk to agents, wholesalers, investors, property managers, neighbors, and even door knock. Some of my best opportunities have come from simply knowing and talking to the right people.
- Finding a lender is relatively easy. Talk to investors who are actively doing the type of flips you want to do. Most will happily tell you who they use if that lender has treated them well.
- Be cautious of anyone immediately trying to sell you something. Especially expensive mentorships, “exclusive” deal sources, or anyone promising easy returns.
With $100K, I’d focus less on maximizing the size of your first deal and more on finding something close to home, with a straightforward renovation, conservative ARV, plenty of contingency, and multiple exit strategies.
Your first flip doesn’t need to be a home run. Getting through the entire process successfully and learning how all the pieces actually work is valuable in itself.
Adam King - NewTown Real Estate522 Reviews- Member since 2025 · 13 posts · 2 votes1mo
Quote from @Adam King:
Hi @Juan Robles,
Having done quite a few flips, my biggest advice for your first one is don’t underestimate the value of proximity. You’ll likely be at the property far more often than you expect. A 30-minute drive versus a 5.5-hour drive to Vegas is a massive difference when a contractor doesn’t show up, materials are wrong, or you need to make a quick decision.
A few other things I’ve learned:
- Expect it to consume more of your time than you think. Managing the GC, subs, materials, inspections, surprises, and timeline can become a job of its own.
- Know your market extremely well. Southern California and Vegas are very different markets. For a first flip, I’d rather know one neighborhood exceptionally well than chase what looks like a better spread somewhere unfamiliar.
- Finding good contractors is often harder than finding financing. Vet them carefully, check their work, and don’t assume the cheapest bid will produce the cheapest project.
- Deals come from relationships. Talk to agents, wholesalers, investors, property managers, neighbors, and even door knock. Some of my best opportunities have come from simply knowing and talking to the right people.
- Finding a lender is relatively easy. Talk to investors who are actively doing the type of flips you want to do. Most will happily tell you who they use if that lender has treated them well.
- Be cautious of anyone immediately trying to sell you something. Especially expensive mentorships, “exclusive” deal sources, or anyone promising easy returns.
With $100K, I’d focus less on maximizing the size of your first deal and more on finding something close to home, with a straightforward renovation, conservative ARV, plenty of contingency, and multiple exit strategies.
Your first flip doesn’t need to be a home run. Getting through the entire process successfully and learning how all the pieces actually work is valuable in itself.
Adam,
Thank you for the response. I currently live in Downtown San Diego, and ideally I am looking for my first deal to be completed in the San Diego / Orange County area. (I grew up in Orange County). Though, I am still trying to crack the code on how to get a deal done in my "backyard" when I currently am aiming for a $100K-$160K Purchase, $25K-$50K Rehab, and $200K-$275K ARV. Maybe the answer is looking at properties on auction in the area, while increasing the projected rehab costs? I am going in with the 70% rule in mind, 15-25% down + closing costs + 3-6 months of reserves for holding costs. I definitely am not looking for a home run and would be happy breaking even, but having the experience of a deal under my belt. Would love to hear your thoughts.
Quote from @Juan Robles:
Quote from @Adam King:
Hi @Juan Robles,
Having done quite a few flips, my biggest advice for your first one is don’t underestimate the value of proximity. You’ll likely be at the property far more often than you expect. A 30-minute drive versus a 5.5-hour drive to Vegas is a massive difference when a contractor doesn’t show up, materials are wrong, or you need to make a quick decision.
A few other things I’ve learned:
- Expect it to consume more of your time than you think. Managing the GC, subs, materials, inspections, surprises, and timeline can become a job of its own.
- Know your market extremely well. Southern California and Vegas are very different markets. For a first flip, I’d rather know one neighborhood exceptionally well than chase what looks like a better spread somewhere unfamiliar.
- Finding good contractors is often harder than finding financing. Vet them carefully, check their work, and don’t assume the cheapest bid will produce the cheapest project.
- Deals come from relationships. Talk to agents, wholesalers, investors, property managers, neighbors, and even door knock. Some of my best opportunities have come from simply knowing and talking to the right people.
- Finding a lender is relatively easy. Talk to investors who are actively doing the type of flips you want to do. Most will happily tell you who they use if that lender has treated them well.
- Be cautious of anyone immediately trying to sell you something. Especially expensive mentorships, “exclusive” deal sources, or anyone promising easy returns.
With $100K, I’d focus less on maximizing the size of your first deal and more on finding something close to home, with a straightforward renovation, conservative ARV, plenty of contingency, and multiple exit strategies.
Your first flip doesn’t need to be a home run. Getting through the entire process successfully and learning how all the pieces actually work is valuable in itself.
Adam,
Thank you for the response. I currently live in Downtown San Diego, and ideally I am looking for my first deal to be completed in the San Diego / Orange County area. (I grew up in Orange County). Though, I am still trying to crack the code on how to get a deal done in my "backyard" when I currently am aiming for a $100K-$160K Purchase, $25K-$50K Rehab, and $200K-$275K ARV. Maybe the answer is looking at properties on auction in the area, while increasing the projected rehab costs? I am going in with the 70% rule in mind, 15-25% down + closing costs + 3-6 months of reserves for holding costs. I definitely am not looking for a home run and would be happy breaking even, but having the experience of a deal under my belt. Would love to hear your thoughts.
My 23 year old son went under contract on his first flip yesterday in San Diego. It closes in early October. It is in Bay Ho a little north west (on maybe just west) of USD. He has completed 2 rehabs and a crazy large tenant flip plus quite a few normal tenant flips. So he has some good contacts/knowledge on the rehab side. Everything else is new for him (first purchase, first flip, first sell (assuming things go ok), etc). He created a bank account yesterday for the effort. we want him to have an LLC for the effort because he has enough assets to warrant protection.
I recommended against the purchase at the price he paid:
- too costly for a first flip. First flip should be half this cost.
- no contingencies. No contingencies is common on off market purchases in this market.
- too rushed underwriting. Raises risk. Did not stress scenarios. I told him on a purchase I typically spend virtually a day on underwriting. I underwrite various scenarios I suspect we spent less than 1 hour underwriting this offer. My son is regularly discards risks (except for flying). This is in virtually everything, so this was unlikely to be different.
- off market purchase implies less inspections, etc raising risks.
- margin is too tight. At best case he could make decent money on the flip. Worse case is much worse. At this risk level, I would want way bigger margin for anything that can go wrong.
The positives:
- good location (very good location for first flip). I would grade the area as b+.
- structurally sound. If the structure is an indicator, maybe the mechanicals are all sound. None were checked out/thoroughly inspected.
- the size of the house is reasonable for first flip. The price is largely due to location.
The numbers:
- $1.125m purchase
- ~$200k rehab, holding (family friendly financing), and selling.
- ARV ~$1.45m
Hopefully he makes money on this. If he does not, he will gain significant knowledge. I personally believe much of that same knowledge could have been obtained on a local flip that was half this size (which would be small for San Diego) and that would have been my preference.
- 1moAdam KingBusiness MemberReal Estate Agent · San Diego, CA · Member since 2023 · 87 posts · 45 votes
Quote from @Juan Robles:
Quote from @Adam King:
Hi @Juan Robles,
Having done quite a few flips, my biggest advice for your first one is don’t underestimate the value of proximity. You’ll likely be at the property far more often than you expect. A 30-minute drive versus a 5.5-hour drive to Vegas is a massive difference when a contractor doesn’t show up, materials are wrong, or you need to make a quick decision.
A few other things I’ve learned:
- Expect it to consume more of your time than you think. Managing the GC, subs, materials, inspections, surprises, and timeline can become a job of its own.
- Know your market extremely well. Southern California and Vegas are very different markets. For a first flip, I’d rather know one neighborhood exceptionally well than chase what looks like a better spread somewhere unfamiliar.
- Finding good contractors is often harder than finding financing. Vet them carefully, check their work, and don’t assume the cheapest bid will produce the cheapest project.
- Deals come from relationships. Talk to agents, wholesalers, investors, property managers, neighbors, and even door knock. Some of my best opportunities have come from simply knowing and talking to the right people.
- Finding a lender is relatively easy. Talk to investors who are actively doing the type of flips you want to do. Most will happily tell you who they use if that lender has treated them well.
- Be cautious of anyone immediately trying to sell you something. Especially expensive mentorships, “exclusive” deal sources, or anyone promising easy returns.
With $100K, I’d focus less on maximizing the size of your first deal and more on finding something close to home, with a straightforward renovation, conservative ARV, plenty of contingency, and multiple exit strategies.
Your first flip doesn’t need to be a home run. Getting through the entire process successfully and learning how all the pieces actually work is valuable in itself.
Adam,
Thank you for the response. I currently live in Downtown San Diego, and ideally I am looking for my first deal to be completed in the San Diego / Orange County area. (I grew up in Orange County). Though, I am still trying to crack the code on how to get a deal done in my "backyard" when I currently am aiming for a $100K-$160K Purchase, $25K-$50K Rehab, and $200K-$275K ARV. Maybe the answer is looking at properties on auction in the area, while increasing the projected rehab costs? I am going in with the 70% rule in mind, 15-25% down + closing costs + 3-6 months of reserves for holding costs. I definitely am not looking for a home run and would be happy breaking even, but having the experience of a deal under my belt. Would love to hear your thoughts.
I appreciate you laying all of that out. I think the biggest thing we need to do is recalibrate the numbers a bit for Southern California.
A $100K–$160K purchase with a $25K–$50K rehab and $200K–$275K ARV unfortunately isn't realistic in San Diego or Orange County. You may occasionally find something closer to those numbers much farther out in the desert, but even there it would be difficult.
I'd also be careful building your strategy around the 70% rule. Deals at 70% of ARV minus repairs are extremely difficult to find in our market, especially through traditional channels. Investors consistently getting opportunities anywhere near those margins generally have established off-market pipelines and relationships that took years to build.
I actually wouldn’t recommend auctions as the solution either, especially for a first deal. They typically require cash and very fast closings, often provide limited opportunity for inspections and due diligence, and you may be purchasing without the same title protections you would have in a traditional transaction. That adds substantially more risk at exactly the point where you’re trying to gain experience.
I am curious where you came up with the $100K–$160K purchase, $25K–$50K rehab, and $200K–$275K ARV targets. Are those numbers based on the capital you have available, financing limitations, or a strategy/course you've been working from?
Once I understand what’s driving those numbers, I can give you a much better idea of what I think is realistically achievable here and what I would consider for a first deal.
Adam King - NewTown Real Estate522 Reviews - Member since 2025 · 13 posts · 2 votes1mo
Quote from @Adam King:
Quote from @Juan Robles:
Quote from @Adam King:
Hi @Juan Robles,
Having done quite a few flips, my biggest advice for your first one is don’t underestimate the value of proximity. You’ll likely be at the property far more often than you expect. A 30-minute drive versus a 5.5-hour drive to Vegas is a massive difference when a contractor doesn’t show up, materials are wrong, or you need to make a quick decision.
A few other things I’ve learned:
- Expect it to consume more of your time than you think. Managing the GC, subs, materials, inspections, surprises, and timeline can become a job of its own.
- Know your market extremely well. Southern California and Vegas are very different markets. For a first flip, I’d rather know one neighborhood exceptionally well than chase what looks like a better spread somewhere unfamiliar.
- Finding good contractors is often harder than finding financing. Vet them carefully, check their work, and don’t assume the cheapest bid will produce the cheapest project.
- Deals come from relationships. Talk to agents, wholesalers, investors, property managers, neighbors, and even door knock. Some of my best opportunities have come from simply knowing and talking to the right people.
- Finding a lender is relatively easy. Talk to investors who are actively doing the type of flips you want to do. Most will happily tell you who they use if that lender has treated them well.
- Be cautious of anyone immediately trying to sell you something. Especially expensive mentorships, “exclusive” deal sources, or anyone promising easy returns.
With $100K, I’d focus less on maximizing the size of your first deal and more on finding something close to home, with a straightforward renovation, conservative ARV, plenty of contingency, and multiple exit strategies.
Your first flip doesn’t need to be a home run. Getting through the entire process successfully and learning how all the pieces actually work is valuable in itself.
Adam,
Thank you for the response. I currently live in Downtown San Diego, and ideally I am looking for my first deal to be completed in the San Diego / Orange County area. (I grew up in Orange County). Though, I am still trying to crack the code on how to get a deal done in my "backyard" when I currently am aiming for a $100K-$160K Purchase, $25K-$50K Rehab, and $200K-$275K ARV. Maybe the answer is looking at properties on auction in the area, while increasing the projected rehab costs? I am going in with the 70% rule in mind, 15-25% down + closing costs + 3-6 months of reserves for holding costs. I definitely am not looking for a home run and would be happy breaking even, but having the experience of a deal under my belt. Would love to hear your thoughts.
I appreciate you laying all of that out. I think the biggest thing we need to do is recalibrate the numbers a bit for Southern California.
A $100K–$160K purchase with a $25K–$50K rehab and $200K–$275K ARV unfortunately isn't realistic in San Diego or Orange County. You may occasionally find something closer to those numbers much farther out in the desert, but even there it would be difficult.
I'd also be careful building your strategy around the 70% rule. Deals at 70% of ARV minus repairs are extremely difficult to find in our market, especially through traditional channels. Investors consistently getting opportunities anywhere near those margins generally have established off-market pipelines and relationships that took years to build.
I actually wouldn’t recommend auctions as the solution either, especially for a first deal. They typically require cash and very fast closings, often provide limited opportunity for inspections and due diligence, and you may be purchasing without the same title protections you would have in a traditional transaction. That adds substantially more risk at exactly the point where you’re trying to gain experience.
I am curious where you came up with the $100K–$160K purchase, $25K–$50K rehab, and $200K–$275K ARV targets. Are those numbers based on the capital you have available, financing limitations, or a strategy/course you've been working from?
Once I understand what’s driving those numbers, I can give you a much better idea of what I think is realistically achievable here and what I would consider for a first deal.
Hey Adam,
The targets are based solely on capital I have to deploy for the deal and projecting closing costs that would still leave cash as a safety net in the inevitable scenario where it would be needed. Maybe some capital raising will be needed to execute a deal here in Southern California? Would love to hear what your thoughts are on what would be realistic for a first deal!
- Member since 2025 · 13 posts · 2 votes1mo
Quote from @Dan H.:
Quote from @Juan Robles:
Quote from @Adam King:
Hi @Juan Robles,
Having done quite a few flips, my biggest advice for your first one is don’t underestimate the value of proximity. You’ll likely be at the property far more often than you expect. A 30-minute drive versus a 5.5-hour drive to Vegas is a massive difference when a contractor doesn’t show up, materials are wrong, or you need to make a quick decision.
A few other things I’ve learned:
- Expect it to consume more of your time than you think. Managing the GC, subs, materials, inspections, surprises, and timeline can become a job of its own.
- Know your market extremely well. Southern California and Vegas are very different markets. For a first flip, I’d rather know one neighborhood exceptionally well than chase what looks like a better spread somewhere unfamiliar.
- Finding good contractors is often harder than finding financing. Vet them carefully, check their work, and don’t assume the cheapest bid will produce the cheapest project.
- Deals come from relationships. Talk to agents, wholesalers, investors, property managers, neighbors, and even door knock. Some of my best opportunities have come from simply knowing and talking to the right people.
- Finding a lender is relatively easy. Talk to investors who are actively doing the type of flips you want to do. Most will happily tell you who they use if that lender has treated them well.
- Be cautious of anyone immediately trying to sell you something. Especially expensive mentorships, “exclusive” deal sources, or anyone promising easy returns.
With $100K, I’d focus less on maximizing the size of your first deal and more on finding something close to home, with a straightforward renovation, conservative ARV, plenty of contingency, and multiple exit strategies.
Your first flip doesn’t need to be a home run. Getting through the entire process successfully and learning how all the pieces actually work is valuable in itself.
Adam,
Thank you for the response. I currently live in Downtown San Diego, and ideally I am looking for my first deal to be completed in the San Diego / Orange County area. (I grew up in Orange County). Though, I am still trying to crack the code on how to get a deal done in my "backyard" when I currently am aiming for a $100K-$160K Purchase, $25K-$50K Rehab, and $200K-$275K ARV. Maybe the answer is looking at properties on auction in the area, while increasing the projected rehab costs? I am going in with the 70% rule in mind, 15-25% down + closing costs + 3-6 months of reserves for holding costs. I definitely am not looking for a home run and would be happy breaking even, but having the experience of a deal under my belt. Would love to hear your thoughts.
My 23 year old son went under contract on his first flip yesterday in San Diego. It closes in early October. It is in Bay Ho a little north west (on maybe just west) of USD. He has completed 2 rehabs and a crazy large tenant flip plus quite a few normal tenant flips. So he has some good contacts/knowledge on the rehab side. Everything else is new for him (first purchase, first flip, first sell (assuming things go ok), etc). He created a bank account yesterday for the effort. we want him to have an LLC for the effort because he has enough assets to warrant protection.
I recommended against the purchase at the price he paid:
- too costly for a first flip. First flip should be half this cost.
- no contingencies. No contingencies is common on off market purchases in this market.
- too rushed underwriting. Raises risk. Did not stress scenarios. I told him on a purchase I typically spend virtually a day on underwriting. I underwrite various scenarios I suspect we spent less than 1 hour underwriting this offer. My son is regularly discards risks (except for flying). This is in virtually everything, so this was unlikely to be different.
- off market purchase implies less inspections, etc raising risks.
- margin is too tight. At best case he could make decent money on the flip. Worse case is much worse. At this risk level, I would want way bigger margin for anything that can go wrong.
The positives:
- good location (very good location for first flip). I would grade the area as b+.
- structurally sound. If the structure is an indicator, maybe the mechanicals are all sound. None were checked out/thoroughly inspected.
- the size of the house is reasonable for first flip. The price is largely due to location.
The numbers:
- $1.125m purchase
- ~$200k rehab, holding (family friendly financing), and selling.
- ARV ~$1.45m
Hopefully he makes money on this. If he does not, he will gain significant knowledge. I personally believe much of that same knowledge could have been obtained on a local flip that was half this size (which would be small for San Diego) and that would have been my preference.
Dan,
I appreciate the insight! Please keep me in the loop on any lessons learned as I ramp up to knock out my first one here in San Diego also!
- 1moAdam KingBusiness MemberReal Estate Agent · San Diego, CA · Member since 2023 · 87 posts · 45 votes
Quote from @Juan Robles:
Quote from @Adam King:
Quote from @Juan Robles:
Quote from @Adam King:
Hi @Juan Robles,
Having done quite a few flips, my biggest advice for your first one is don’t underestimate the value of proximity. You’ll likely be at the property far more often than you expect. A 30-minute drive versus a 5.5-hour drive to Vegas is a massive difference when a contractor doesn’t show up, materials are wrong, or you need to make a quick decision.
A few other things I’ve learned:
- Expect it to consume more of your time than you think. Managing the GC, subs, materials, inspections, surprises, and timeline can become a job of its own.
- Know your market extremely well. Southern California and Vegas are very different markets. For a first flip, I’d rather know one neighborhood exceptionally well than chase what looks like a better spread somewhere unfamiliar.
- Finding good contractors is often harder than finding financing. Vet them carefully, check their work, and don’t assume the cheapest bid will produce the cheapest project.
- Deals come from relationships. Talk to agents, wholesalers, investors, property managers, neighbors, and even door knock. Some of my best opportunities have come from simply knowing and talking to the right people.
- Finding a lender is relatively easy. Talk to investors who are actively doing the type of flips you want to do. Most will happily tell you who they use if that lender has treated them well.
- Be cautious of anyone immediately trying to sell you something. Especially expensive mentorships, “exclusive” deal sources, or anyone promising easy returns.
With $100K, I’d focus less on maximizing the size of your first deal and more on finding something close to home, with a straightforward renovation, conservative ARV, plenty of contingency, and multiple exit strategies.
Your first flip doesn’t need to be a home run. Getting through the entire process successfully and learning how all the pieces actually work is valuable in itself.
Adam,
Thank you for the response. I currently live in Downtown San Diego, and ideally I am looking for my first deal to be completed in the San Diego / Orange County area. (I grew up in Orange County). Though, I am still trying to crack the code on how to get a deal done in my "backyard" when I currently am aiming for a $100K-$160K Purchase, $25K-$50K Rehab, and $200K-$275K ARV. Maybe the answer is looking at properties on auction in the area, while increasing the projected rehab costs? I am going in with the 70% rule in mind, 15-25% down + closing costs + 3-6 months of reserves for holding costs. I definitely am not looking for a home run and would be happy breaking even, but having the experience of a deal under my belt. Would love to hear your thoughts.
I appreciate you laying all of that out. I think the biggest thing we need to do is recalibrate the numbers a bit for Southern California.
A $100K–$160K purchase with a $25K–$50K rehab and $200K–$275K ARV unfortunately isn't realistic in San Diego or Orange County. You may occasionally find something closer to those numbers much farther out in the desert, but even there it would be difficult.
I'd also be careful building your strategy around the 70% rule. Deals at 70% of ARV minus repairs are extremely difficult to find in our market, especially through traditional channels. Investors consistently getting opportunities anywhere near those margins generally have established off-market pipelines and relationships that took years to build.
I actually wouldn’t recommend auctions as the solution either, especially for a first deal. They typically require cash and very fast closings, often provide limited opportunity for inspections and due diligence, and you may be purchasing without the same title protections you would have in a traditional transaction. That adds substantially more risk at exactly the point where you’re trying to gain experience.
I am curious where you came up with the $100K–$160K purchase, $25K–$50K rehab, and $200K–$275K ARV targets. Are those numbers based on the capital you have available, financing limitations, or a strategy/course you've been working from?
Once I understand what’s driving those numbers, I can give you a much better idea of what I think is realistically achievable here and what I would consider for a first deal.
Hey Adam,
The targets are based solely on capital I have to deploy for the deal and projecting closing costs that would still leave cash as a safety net in the inevitable scenario where it would be needed. Maybe some capital raising will be needed to execute a deal here in Southern California? Would love to hear what your thoughts are on what would be realistic for a first deal!
That makes a lot more sense, and I think keeping a healthy reserve is absolutely the right approach.
I’ve been investing for about 20 years, and for a first deal I’d prioritize managing risk over maximizing returns. I also wouldn’t assume you need to raise more capital yet. Financing the acquisition and preserving your cash for rehab, carrying costs, and reserves may make more sense.
In Southern California, I'd focus less on the 70% rule and more on total project cost, realistic ARV, return on your actual cash invested, and having enough margin for things to go wrong.
If you’re comfortable sharing roughly how much capital you have available, I can give you a realistic idea of what I’d target for a first deal here.Adam King - NewTown Real Estate522 Reviews
- 1moNicholas FloydBusiness MemberNY · Member since 2026 · 288 posts · 95 votes
With up to $100K available, I’d be careful about tying all of that cash up in the first deal. On the funding side, I’d get your financing options lined up before you start making serious offers and keep a solid reserve for rehab overruns, carrying costs, and unexpected issues. A lender is going to pay close attention to the purchase price, rehab budget, ARV, your cash contribution, and exit strategy. If the numbers are strong, using financing strategically can help you preserve some of your liquidity instead of putting everything into one property.
- Member since 2025 · 13 posts · 2 votes1mo
Quote from @Nicholas Floyd:
With up to $100K available, I'd be careful about tying all of that cash up in the first deal. On the funding side, I'd get your financing options lined up before you start making serious offers and keep a solid reserve for rehab overruns, carrying costs, and unexpected issues. A lender is going to pay close attention to the purchase price, rehab budget, ARV, your cash contribution, and exit strategy. If the numbers are strong, using financing strategically can help you preserve some of your liquidity instead of putting everything into one property.
Nicholas,
Thanks for the response. 100% agree. I am currently speaking to different lenders to get a sense of what will be required and what would be feasible. What do you think are the best ways to vet my financing options?
- 1moNicholas FloydBusiness MemberNY · Member since 2026 · 288 posts · 95 votes
@Juan Robles I would love to talk with you about it, send me a direct message so we can see what works best for you
@Juan Robles staying local to start off is the best idea.
Good Investing...
- 1moRudy TaghiPro MemberInvestor · Los Angeles California · Member since 2018 · 12 posts · 6 votes
Hey Juan, one thing I’d add from my own experience is that on a first investment, I’d rather see someone buy a deal that survives conservative numbers than chase the biggest projected profit. Since you’re looking in Southern California / Vegas, have you narrowed down which areas you’d realistically be willing to manage this project in? That would probably be my first filter before even looking at financing. Are you local to SoCal or Vegas?
- Woodland Hills, Los Angeles County · Member since 2026 · 17 posts · 3 votes2w
Juan, adding a Los Angeles perspective. We run Cash Home Buyers CA in Woodland Hills and do flips around the Valley, so here's what a realistic first SoCal deal tends to look like:
- Price range: With $100k of your own capital, you're likely using hard money for the purchase and most of the rehab. That puts you in roughly the $600k-$900k purchase range in a lot of inland SoCal areas, less in the IE or Antelope Valley.
- Rehab: Stick to cosmetic work first time around: paint, floors, kitchen/bath refresh, landscaping. Avoid foundation, major permits, or unpermitted additions you'd have to legalize. Permits alone can add months in some LA-area cities.
- Numbers: Use a conservative ARV, the median of your comps rather than the top sale. Budget 10-15% contingency on rehab, and include 6-8 months of holding costs (loan interest, insurance, utilities), plus selling costs of roughly 6-8%.
- Reserves: Keep a chunk of your $100k untouched for draws that come in late, surprises behind walls, and extra months on market. Running out of cash mid-rehab is the most common first-flip mistake I see.
- Red flags: "Wholesale deals" priced near retail, contractors who want large upfront deposits, and ARVs based on one outlier sale.
I'd also pick one market. Flipping 4-5 hours from home is tough when you need to be on site at the last minute.
- 4dScott ScovilleBusiness MemberReal Estate Agent · Sacramento, CA · Member since 2019 · 502 posts · 274 votes
Hi Juan,
Congrats on getting ready for your first flip. Wanting a solid single instead of a home run is exactly the right mindset.
I'm based in Sacramento and mentor newer fix-and-flip investors here. I know you're focused on SoCal and Vegas, but I'd encourage you to at least take a look at Sacramento for deal #1. Entry prices are generally lower than most of SoCal, so $100K of your own capital goes further, and there's still steady buyer demand from Bay Area transplants and first-time buyers.
A few things I see trip up first-time flippers no matter the market:
• Underestimating rehab. Get real bids before you close, and add a 10–15% contingency.
• Forgetting holding costs. Loan interest, insurance, utilities, and taxes add up fast when a project runs long.
• Over-improving. Renovate to what the neighborhood's comps support, not to your personal taste.
• Optimistic ARVs. Use recent sold comps close by, not active listings.
On financing, most first-timers use a hard money or private lender for purchase plus rehab, with your capital covering the down payment, points, and reserves. Working with a lender that funds rehab in draws is a good way to keep your contractor accountable.
If you're open to it, I'd be happy to hop on a call, walk you through how I underwrite deals, and share what a realistic first project looks like in Sacramento. I also work with a team here (agents, contractors, lenders).
Feel free to message me directly. Happy to help either way.
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