so they got 30% of value or 30% of Principle Balance

I doubt it.I suspect that most people use "cash flow" to mean what they think will be left in their bank account at the end of the year since they're not really concerned with accounting principles.  

As much as you want to stand for principle, it's the best approach to take.

Yesterday I got a signed agreement in the mail for a peace of land that is worth$5,000 that I am purchasing for $700.00 ,last week I got a $4,000 vacant lot for $500.00 +$200 back taxes ....I'm not the smartest person in the world but i'm pretty sure thats better then 6% I dont feel the least bit worried that I am doing anything wrong because I am a principle in the transaction. 

You have your sights on some good areas. 

Here are my rankings from the last couple of weeksReal Crowd Ames Holiday Inn 4.5 Great location, 25% equity by sponsor, assuming debt (below market rates), high cash flow and another 5% a year in principle paydown.  

We have our sights on a foreclosure that we REALLY want and we've already done the numbers.

In addition, I am researching online real estate courses in order to get a better understanding of the core principles.

Regrettably, their parents knew very little about money, so they couldn’t show them how to take advantage of their situation, which begs the question; are you teaching your kids sound principles about how to use and invest money?

Fernando, the principle of flipping houses applies to any market, however you have to make sure you have a established network (Lending, motivated sellers, comps, etc) find a property that you can pick up for pennies on the dollar and make sure that after you fix it is comparable to market values.Good luck to you.