One golden rule I follow,if it takes a long time to fix/replace when it breaks, don't buy a cheap one.Imagine, this thing breaks in the middle of your peak season and the people who can come out to rebuild are 2 weeks out....It takes at least a day or two to build something like this even if you are super skilled.

we just see new investors in the forums blown away when they hit their fix big capex - a new roof, a new furnace, a driveway repair, a couple appliances going at once. 

Leverage and invest at 40x $100 000 properties ($20k down + $5k closing cost, 30 yeas fix rate loan) with a return of 10% where you have better asset protection (my keeping lower equity and higher bank position), you are hedge against inflation (agree with me, in 30 years $1 000 000 purchasing power will be less compare than $1 000 000 today) Here is how looks mathematically:1. 10% on $1 000 000 (10x $100 000) = $100 000 / annually - No interest tax deduction- No loan paydown benefit2. 10% on 1 000 000 (40x $100 000) = $400 000 / annually - debt service + full tax benefits+ loan pay down+ hedge against inflation for 30 years+ better asset protection (by maintaining lower equity  position)   + (not guaranteed of course) if appreciation happens, it happens on the all full asset amount, example:If appreciate 10%:In case "1" you will have 10% on $1 000 000 = $1 100 000In case "2" you will have 10% on all 40x properties (40x $100 000 = 4 000 000) = $1 400 000As far as cash flow, as long you buy "right" CAP 8% and higher you will have stronger cash flow on leveraged asset + all additional benefits.

Foundations actually can be fixed.

Most 30 year, fixed rate loans DO have a prepayment penalty. 

We send our clients  a comprehensive list of what we see COULD be fixed, as we have no idea how each owner will want to maintain their property(s). 

One great thing about fix and flip loans is that there is no early payoff penalty, so the original lender's commission is not at risk!

Far more than most real estate acitivies and much quicker think about it.. you sell the same info over and over and get paid instantly you have no roofs to fix no tenants to manage etc etc.. you do have reputation management of course.

So i can fix it up/ rent a room out to a buddy/family member for one year.

ABL, which is the basis for HML/fix and flip lending, will have different criteria and different focuses than multi-year loans based on cashflow and borrower credit score (long term mortgages).