If the home is stripped to the studs, and I personally do the work, wearing a P99 full face respirator along with full body disposable suit... the place is aired out, I give the chemicals time/heat to volatilize...

My 5 year goal is to become a professional real estate fund manager.I happen to live in NYC where there is a large concentration of people with 7 figure incomes who often have a difficult time obtaining a more than nominal return on their at-risk/disposable capital.

Sounds like you already have much more skill and experience at your disposal than the average investor does getting started.

If I end up with a bad investment, I'm more disposed to fix it, rather than unload it.About your second point, though, I'm intending to remain in this house and fully rent my next purchase.

SFH 3/2/2 approx 1300sqft , taxes $2K market value $140k-$150kThere is a repair needed with the plumbing for the disposal in the kitchen area that the laundry also connects to it, a broken pipe.

Their purchasing power is expected to increase rapidly, with an expected $1.4 trillion in disposable income by the year 2020 (socialmediatoday.com).

Another added cost to demo and dispose.

Like dishwashers, garbage disposals and the lot, it's a matter of being an appropriate upgrade for the kind of units.Like @Corby Goade says, I do add A/C if I'm replacing the entire HVAC system.  

To get a taste I'd recommend acquiring a multi w/value-add (lots of sweat in other words) in a B+ area wher you can live and rehab and above all, LEARN as I've observed over he years it's not how much capital one has at their disposal but knowledge that will ultimately yield you the "cash-flow" you're aspired so to grow.  

You collect fees along the way under scenario 2 as well for acquiring, managing and disposing of the property along with your share of the cash flows.