Anyone can model profitable scenarios but not everyone can execute.

Use your $40,000 to buy your way in, learn from some grey-haired guy or gal while on the job, and make a profit. 

We are there to make a profit  , plain and simple .   

This last two months weve gotten 3 new contracts from highly motivated leads, our ROI is about 238% so texting can be very profitable and it does work but it has gotten majorly difficult with the new regulations the past 6 months.

Hi Alan,It's great that you're eager to learn about rentals and flips—both can be highly profitable if done right.

There are no economies of scale to build one property on one lot either so it ends up being more expensive for the builder which means they have to sell at a higher price in order to make their desired profit and if your market doesnt support this, then builder loses money.

Palo alto the 180 recently traded at 3.2 mil and the 350k one would be over 4 mil.. and would have cash flowed a ton :(  But you know I was at the time afraid of negative cash flow and I did make substantial profits on each that went into my business.. so not all bad.. 

Many flippers try to buy in the fall and sell in the spring to boost their profits for this reason.

hold some of that initial 100,000$ for reserves. if you spend it all and something goes wrong you wont have time to accumulate profit the first year to really afford to fix anything. then you'd be dependent on personal income or another loan to fix the issue if one arose. play it slow and safe at first while you figure out the game and take some initial hard knocks that are bound to come. 

A colleague of mine in Scottsdale recently used it to turn a fixer-upper into a profitable rental within months.