I also agree that RE appreciation is unlikely to match the last dozen years, but you never know.Where I am unsure we agree is that paying $450k to improve the cash flow ~$3k (your numbers but I expect my delta wold be similar meaning both my cash flow estimates would be worse than yours but both would be worse by the same amount not affecting the difference) makes sense especially if the cost of having the extra $450k is only 6% rate which is historically simple to beat via numerous investment options and hopefully no one is investing in RE for an expected of 6%.  

My question is: how do you do that and comply with Dodd Frank, which imposes numerous regulations if you finance more than 3 properties per year to consumers who will reside in those properties?  

It is based on performing loans where the mortgage payment is not higher than $600 and they have shown at least 5 years of payment history and get this, they have no higher than a 50% LTV so the homeowners are very motivated to not walk away from all that equity.

The ones that motivate you and keep you on track.

Is anyone still using free classified sites to market for Motivated Sellers?

I set up my daily time blocks on GC and watch the ted line steal my day away for motivation.

It can easily take 6+ months to find a motivated seller. - Just be prepared, because a motivated seller typically has a property with issues you need to be sure you can solve.

The home happened to be owned by an estate and they were motivated to sell.

Our city is rapidly expanding, offering numerous job opportunities and a wealth of investment possibilities.

I looked at numerous live-in flip opportunities.