I am not looking to earn a lot on this flip as it's quite cheap but if I can do it successfully, then I would've gained experience and a bit of cash too.have you looked at rural Japan.. same numbers much more stable environment for flipping..  

Having said that, I would place more of the blame on the real estate market self-reinforcing the current environment where property values increased and banks were willing to lend on higher values which led people suddenly being able to access more money which in turn led to more money being spent on buying real estate.

My co-worker is looking to sell his rental for what he owes on it....which is about 75% ARV....the property needs about 15-20k worth of work inclusive of a new roof.

Well if you sell the only way it makes sense is with a 1031 or you'd drop all your hard earned gain for a better return and that's a break even game - no fun for anyone.Cash out refi - watch out in an environment of rising rates. 

@Raj G. definitely not impossible to find cash flowing properties even in this high-priced environment.

This doesn't sound ideal for me in a rising interest rate environment.3) please provide any advice you have when comes to using owner financing, things to watch out for.Many thanks

I think as of right now we are in a stalemate between the two market environments.

In particular in the mid segement - we are seeing more new construction as of lateley, inclusing my own business - and all of them are in the 450 to 650k range.

Its been working alright so far but does take more and more work as it gets bigger and more inclusive.

It is refreshing seeing people on this site being so welcoming and inclusive no matter other members levels of expertise.