As you go there, on normal days, they will not sell you direct carpet and pad only, they know if customers know the real price of carpet, they will just buy the carpet without installation.

They'll offer all sorts of "fixes" to increase your property value, but likely don't have the expertise to do them. 

I have no clue about CA laws and customs. 

John Brendlinger Are you really a customer who has dealt with him many times or you got paid to write the post?

In general, it is harder to secure props that flow in these areas because they tend to be better taken care of, leaving less room for a well-done cost-effective rehab to increase value while keeping the all-in price below market.

Seems like a very intriguing way of managing property and benefitting from increase NOI and ultimately property value.I am looking at a 3 family property that needs a ton of work (perhaps $75-100K, although I haven't done a deep dive on pricing yet).

While I do believe you'd learn a lot, I think you have to think about whether you're ok with a high failure rate of your customers and your peers.

My goal is either to lower my interest rate which will help lower my mortgage payment which helps in increasing my monthly profits or pulling equity to make improvements to the rental and invest in other investment properties.

What does " . . and must treat the seller as a customer, . . " mean? 

This would increase my monthly cash flow immensely.