The goal with flips and rehabs is to do a QUALITY job...On-TIME...On-BUDGET while minimizing risk.  

As far as the interest free loans I give the government, we try to minimize those, but we typically get some money back anyhow, and that has always gone to reduce any consumer debt (car notes etc).

Indiana isn't exactly an appreciating market, as far as I know, so you really need to make sure it has a good cap rate--minimally 7% I'd say.

Its also better to get a written and signed statement along with their drivers license info and insurance information if the person admits fault at the scene and then you do not need to file a police report (which your insurance company WILL get) and you can file a claim against their insurance, this will minimize your risk of getting your policy jacked up next time you renew.

Especially with minimal cash!

That's not even counting on any of the costs to splash on a little paint and spruce the place up a bit with minimal costs. 

My only concern about that is in regards to minimizing risk, so if buying wood-framed houses in certain areas doesn't present extra risk, then I'm game!  

There are alot of measures you can take to minimize these types of risks.

I do like the live-in flip idea because theoretical lump sum at the end of the project while minimizing the risk by living in it.

We wanted a steady stream of income for our retirement with minimal risk & minimal overhead.