But this is all just speculation on my part, obviously.

I find it hard to fathom they would do all this for 10% of the net profit. and give the investor 90% of net profit.. can't really stay in business that way.Now when I looked at one of the 2 flats they said they paid 150k for before rehab.. depending on where that is.. ( IE south side) that property could be bought wholesale for under 50k.. and then sold to the Aussie for 100k profit.. this would be common .. and then the resale could be to another Aussie or foreigner who does not really know values is paying cash and just believes in what they are being told ... again all speculation on my part... but myself being in the flipping bizz now for a  few decades those types of margins are rock star and not shared with investors like this.. why would you.. you would simply get a HML or partner with a money partner like me and keep not give 90% away to the money partner..

If you live in it for a year and are able to sell it for $700k (which is something of speculation for such a short term, but any longer and this ceases to be an investment), after you price in paying a realtor, fixing the septic, and paying the mortgage, your profit is less than $100,000.

Sometimes it's speculation!

(Or have plenty of reserves if you're speculating on appreciation).

On the other end of the spectrum is a gut rehab / new construction in a speculative location (this is high-risk, opportunistic strategy).

Not sure, because at that point you're speculating appreciation, which is more of a gamble than investment.Refinancing to break even and using the cash to by a cash flow property may make sense.

Who knows what the markets will actually bring :)---- More Context Below ---Market within the city limits generally seems feverish due to speculation on future development.

Forced appreciation is not speculative.

If you're purely speculating on appreciation, there are better cities to gamble your money on.