Welcome, @Brynn HatchSoCal can be a tough nut to crack for newbies.A couple years ago I mailed out lots of letters to homeowners across LA County with no luck.Then I tried rural Kern County and got a deal from a distressed homeowner in California City.The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.Also, have you considered an owner-occupied small multifamily for your first deal?

What profit margin is common? 

The profit margin you'e relying on is very slim for the amount of work you want to oversee and I worry that your renovation budget could get blind sided.

(THEN, of course, wholesalers who have to buy it EVEN cheaper because they need to fit in their margin in addition to selling it cheap enough for #6 to buy it!!).

I've also considered flipping houses, however, the inventory in my area leaves very little profit margin and the competition is super tough. 

(Not to go down a rabbit hole, but you can trade on margin and use OPM to purchase equities btw.

I am skeptical that you can turn a marginal investment into a good one through lease magic.

and lots of hot springs now on to RK as @Wayne Brooks  PURE FANTASY  now you can in some states bid with a deposit at sherrifs sales.. but the competition in 99% of the counties in the US is so keen that those kind of profit margins are simply not there. in CA its cash on the barrel head to buy one. 

With a highly reputable and reliable offer will most flips be bought up and or margins shrink to points where you will not be able to compete?

They tend to find good deals you're not as likely to lose on, but for the margin they make you could source similar deals yourself.If you need a good GC who's cheap and smart and shows up and is available right away and is true to his/her word...good luck.