I would disagree on so many levels about this recycled myth, suggesting someone start by wholesaling (especially in Southern California) is a near certain instruction on how to waste several thousand dollars, their time and likely cause them to end their entry into real estate investing due to failure. 

Each 100-150k cash I have can be recycled into a new project earning $10-20k profit each, every 3 months.

It all depends on how important it is for you to recycle your cash quickly. 

And do you go through your attorney for every contract - or once you have some type of template established, do you ever just recycle them?

I counted myself lucky that I knew him because it saved me the cost of having them tore down and hauled to a recycling center where I would pay another fee.

Are they appropriate in comparison to the long term historical averages (over, say 20+ years, spanning multiple RE cycles, not just last year, for example) for your market?

But, as Jeff said, finding a property with a 'value add' potential is paramount (outside of seller-financing) if you plan on recycling your capital faster.  

Other than that, if you buy smart and give yourself plenty of cushion to cover for the unexpected, the process should recycle. 

@Shawn Peden  The originally invested money 134k + 6k  get recycle to the next investment.  

Even done to a home NOT in one of those statuses, by getting it at discount then recycling it to the original homeowner, is called FRAUD.