But I know investor that re-sell properties right away.

I would only add that you should always check that the listing is directly listed by a licensed (in your state) broker (license should be displayed on the site) and that it is not a referral service that will gather your property info and resell it to a local Broker in your area. 

@Virginia Reasor Rental or resell?

Found a lender who lends their own money and they are coming at me with $1300 Origination fee half the cost for underwriting and he says they are going to resell my mortgage and make more on the sale of it than charging me upfront cost of the loan.

@Matt Smith, if you're buying the fixer uppers primarily to resell then they would not qualify for 1031 treatment.  

If I'm reading this correctly, the seller is going to purchase an REO using transactional funding and then resell to your buyer? 

A Cut Above did many of their 'residings' (homes being resided, to resell) just as before we started replacing LP InnerSeal, Omni board, EIFS stucco, etc. siding, we were building spec customs in places like Shadowbrook 1 & 2 developments, in Hillsboro (And most of the buyers were Nike, Intel, etc. management) because the 'land development' company, didn't happen!

Turn key companies are in the business of buying distressed properties at a discount and reselling them to (mostly out of state) "investors" ... by the time you get the property, a wholesaler, contractors, real estate agents, the turnkey company, the hard money lender, out of state marketers, and the PM have already gotten or will get paid on the deal ... that is a lot of middle men getting paid, and who do you suppose pays for all those markups?

They have the option to take as much or as little as they like down, can get above market interest rates if they negotiate well with the buyer and if the buyer defaults, they get the property back to resell.  

I definitely want to be a buy and hold investor with long term passive income great enough to cover all my costs of living, but I also want to be able to buy, rehab and resell.