Or is it that lenders are risk averse but still want to make money - they just need to find someone with the experience and stomach for risk to go out and make them money?

Because of these factors, I have little interest (or the stomach) in starting out "close to home". 

I am able to stomach some pretty bad properties that need 3-6 months of work which is.

. :) I would look at the center of town though where you'll find some lower cost, little less stellar neighborhoods but that you wont feel scared walking through (depending on your stomach) Near Downtown, UNLV and east, and on the westside from Chinatown on...

Eventually those will either go back to the bank or they will find out that losing 5 to 10k at once is the reality (better to take a shot in the head then one in the stomach).  

I that I think your next flip, if you have the stomach, will more than make up for this one. 

Frankly, I don't have the stomach for evicting a homeowner. 

First, I don't really have the stomach for dealing with high crime/warzone properties.  

If it is just you and your family, and you can stomach the maintenance, the go for it.

I realize that it is hard to stomach the startup costs of listening to an attorney talk about your business, but it will definitely save you money in the long run.