In the end, the project was completed successfully and sold for a profit.

Now we're seeing major disasters in densely populated areas and insurance companies can't maintain their profit margins.

Until you can scale, it's likely that you can execute flips quicker than new builds, thus you can turn around profits quicker to reinvest. 

This occurs with mortgage financing, margin trading in stocks and other forms of leverage. 

I have found that the profit margins are very low in this model if the house is in a C/D neighborhood because you are limited to the amount of rent you can charge for each room.

That could mean working with an investor willing to fund the deal for a share of the profits or starting smaller with a house hack or live-in flip to build credibility, or putting sweat equity into a deal with a partner to learn and build your track record.

He prioritizes deals with substantial margins, mitigating rate increases, and actively manages rehab costs to maximize profitability by being heavily involved in the process and GCing his own projects.

We had to enter in holding costs, holding time (time value of the money), ARVs, rehab costs, a contingency reserve (a little extra to cover unforseen stuff), a reasonable profit margin, etc to get to a "Strike Price" as we call it.

All-In Costs & Profitability-ARV: $450K-Purchase Price (financed): $170K-Repairs: $150K-Holding Costs & Financing: ~$20K–$30K (insurance, taxes, utilities, interest, etc.)

I still am on the lists of all the major wholesalers and still show up to showings occasionally on properties that might have enough margin for me but have not purchased recently from a wholesaler.Just like Adrien says, they provide a service of marketing and negotiating contracts for you.