If they spend five years in prison and their individual profit was 200K then yes...crime pays.

Her conViction for tax fraud led her to spend some years in prison while in her 70s.  

Prisons are full of smart guys!

Federal law violations aren't a hand slap like state RE laws, violations carry fines up to $100,000.00 and/or 10 years in federal prison.

Just make sure the deadbeat dad is completely out of the picture, the few times we’ve had minor issues is when the ex gets out of prison and moves in, or sometimes a son or cousin, but generally those on Sec. 8 are very careful not to do anything that would cause them to lose their rental assistance.

The fact that it is flipped should have no real bearing on what you pay, however, the fact that it is flipped should give you other concerns....which may result in wanting to pay less....or not wanting to buy it at all.Flippers are notorious for cutting corners on construction.

Auction properties are notorious for hidden repairs (more so than traditional sales).

I have one tenant that is notoriously late and has all the excuses in the world.

Foreclosure/REO properties are notoriously difficult to work with. 

Be careful with the legal on anything you invest in because these types of opportunities are notorious for having a poor securities structure.