This approach does not work on every deal, but if they are doing 1 out of 3-5 deals like this, it really helps the fix & flipper to develop long term wealth, rather than just chasing the next deal for chunks of money. 

We don't rent that house  at the moment so I can't say what the current situation is.

I wouldn't suggest you buy a single-family home to live in because the additional cost outweighs the benefits.

Italians like to avoid taxes thus they don’t necessarily go through the permit process.  

To become a true business owner or investor, you need to leverage your time through others.

It's not as easy as the social media gurus preach. 

The current price of the house is worth about $900000.

@Jade Frank I agree with what @Dominic Mazzarella and others are saying here, but If you find the downside outweighs the gain and you ultimately decide to sell the property, Since the property was held for investment use it would qualify for a 1031 exchange. 

Keeping my eye on the worst houses in the best neighbors that need some reno that I can turn into STRs or LTRs.

@Mattin Hosh I work with clients that invest in the Memphis and several other markets in the South.