The residual income and tax benefits usually far outweigh the quick nickel strategy. 

Andy - thanks for the JV perspective - if i understand correctly, in this case if the rehab pure cost is $550K, you would add $55k for rehab profit, and then take 30% of the residual equity achieved on the deal?

I have found something that is generating a nice residual income while providing value to the customer (usually lower prices).

Doing both gives you current income as well as residual income. 

Then the cold weather hit & the residual water in both the washing machine & dishwasher pump(s) froze.

Essentially I am interested in creating a residual income via investment.

I'm looking to get into real estate because of the residual income aspect and of course owning properties.

My goal for 2016 is to acquire my first residual income property so as to gain cash flow that I may reinvest in properties. 

.- Your property has generated substantial equity in the past few years- You are an active investor looking to maximize your net worth aggressively- You're willing to move those funds into assets that are less volatile (i.e. markets that don't go up or down as much) but with higher residual income until your next opportunity to invest in equity arises. 

I'm getting at the age where I would like to increase my net wealth and build residual income for my later years.