The key is really focusing on the right neighborhoods, knowing your numbers, and being patient for the right opportunities.As for the fix-and-flip market, the lower entry costs can definitely make it a great place to start, but you've got to be mindful of renovation budgets and timelines.

It's typical to sell 40k programs to people after the free or low money get together.

They proved to be a low risk, low cash requirement to get some traction. 

There is a story to every pocket of every neighborhood that locals will know, but you may not, if investing out of state or in a market you don't know.

Talk to some of the Realtors in the city and ask them to define where the neighborhoods are and which neighborhoods they think are best.

Personally at the spot I am in now I would probably pay cash, as I don't like debt and interest rates aren't that low. 

Quote from @Donald Hatter: Pros:- Builders have many homes to sell at one time so it is easier to negotiate a better deal than with a home owner in the same neighborhood who is trying to sell their primary residence - Buyers bust out of deals all the time and builders don't like holding completed homes- Lower maintenance which leads to easier property management expenses.  

If it were 3 investors for example, and 2 have low credit scores, you'd want to have them at 10%, 10%, and you at 80% so your higher scores can be used.  

Next is probably his book on Investing with No and Low Money Down.

I want to say its like a C neighborhood (not sure if there's an actual site that'll tell you more accurately).He already has a team in place and I'm pretty much just taking over his property and its pretty stable.