You'd have to be a builder to really reap any sort of profits from an area as such. 

Just like any other investment, if you take into account all your costs and buy at the right price, you can still make a decent profit.

However, the end goal can still be profitable.

Double check on permits if the previous owners has done a remodel.Do not rely on agents representation.Do not work with a dual agency as a buyer, the agents first commitment is to the sellers.Allow at least a year of seasoning before determining the profits of an investment.Happy to share.

For tax purposes, the profit is calculated as the sale price minus the cost basis (purchase price + renovations + transaction costs).

The barrier to entry is lower so they seem attractive, and to the person who knows what they are doing, they can be very profitable.

I manage the property and the tenants, pay the owner of the property a rent that meets their mortgage plus a little profit, charge fair market rent from the tenants I sublet to, and exercise an option to buy the property after a predefined term and at a predefined price.This way tired landlords don't have to manage their property anymore, and I start investing with little to no money.

All cash costs, and negative CF is a loss, must be recovered before you can make a profit. 

Partnering with Billy Medlen, we saw the opportunity to create a win-win situation by transforming the property and delivering a strong profit.

Even if the property were to sell it $180,000 that's a lot of risk for 30 K of profit.