I guess the falseness of this thinking is that I don't increase the value of my time by doing the work myself, I actually keep it the same, and decrease costs on a deal that wouldn't make sense without my low hourly wage.

If you sign a contract that says you're going to buy the property, when you don't have both the intent and the ability (funds) to do so - (hoping that you can assign the contract) - you have induced someone to sign a contract under false pretenses.In other words, you are not capable of performing to the contract that you signed.That is the very definition of "fraud in the inducement".Of course, you would have to market a property that you don't actually own when you're trying to assign the contract.  

But the first few posts i saw people trying to leverage amounts (like 5k) to start flipping and doing other crazy things and to me that sounded ABSURD!

Some people represent themselves falsely. 

It's absurd to wait till you have X dollars, then think you are going to flip some switch and become an investor.

Section 1101.156(b), Occupations Code, is amended to read as follows: (b) The commission may not include in rules to prohibit false, misleading, or deceptive practices by a person regulated by the commission a rule that: (1) restricts the use of any advertising medium; (2) restricts the person's personal appearance or use of the person's voice in an advertisement; (3) relates to the size or duration of an advertisement used by the person; [or] (4) restricts the person's advertisement under an assumed or [a] trade name that is authorized by a law of this state and registered with the commission; or (5)requires the term "broker," "agent," or a similar designation or term, a reference to the commission, or the person's license number to be included in the person's advertisement.

I have no issue with my mistakes being pointed out and corrected, but this is just immensely false. 

@Michael H. nearly $22,000 for a bathroomredo (typical sized bathroom) is absurd.

Take advantage of this absurdly stupid low interest rates, lock it up for 30 years fixed at sub 5%, and some day you'll be able to move out live somewhere you want to actually live.

If you still thought its worth it, I would try and pass on the costs of utilities between the rental units like Timothy said.Ultimately, I would be pissed off at the thought that all that time spent managing these units would only net me $2,800 cash flow a year... thats absurd!!