Does this sound legit?

[Nick Bitz]

So I found this company through a friend and met with them last week. I want to break down their model and see if there are any issues some of you seasoned veterans may be able to point out. 

Here goes,

What they do is buy houses wholesale using Hard Money and have their team do the rehab (i would pick from a list of houses), then refinance at 75% ARV conventional. They find renters and do the property management for 10% and you're locked into that for 1 year. All said it would cost me roughly 15-20k to get into a rented out house cashflowing a couple hundred bucks and do realistically no work other than fund it. Anyone heard of anything like this? Thanks in advance.

ALSO I'm a newbie so if i left out any important figure let me know lol