If you do buy a pre foreclosure and follow all the rules and sell within 36 months any profit 80% has to go back to the original owner  who was in foreclosure.Since I made living doing foreclosure rescue prior to this . the new laws removed that activity from my business..

Can you net a solid profit, without having too much risk?

You'll need to make sure the ROI spread is large enough that you can still turn a healthy profit if you have to sell under what your projecting for ARV. 

What makes it slow in this case is that you don't really start seeing real cash flow until after year five but it's more effective than rentals in that there is little to no maintenance.Sure you can live in a home while fixing it up with the intention of selling it for a nice profit later but I think many people are already doing that and the buyers of slow flips now also have that opportunity without having to qualify with a bank.

Some investors have found that working with the right team even in challenging markets can be a pleasant and profitable venture.  

If his fixed costs are $4000 per month his profit just doubled from $1000 to $2000 monthly.

Fully occupied, the property grosses $5,570/month with $4690 net profit after expenses.

I was determined and wanted something that I could sustain for the long term for my family's livelihood and control the effort I put in and the results I got from that effort.I specialize in sourcing properties for fix and flip investors nationwide (wholesaling, but with real-world experience and closed profitable deals for myself and my investor partners) with a roadmap to acquire rental properties as finances permit.A lot of our deals are currently coming through organic search as I have a background in substantial traffic generation through search engine optimization and organic means.

.: Quote from @Theo Hicks: In ideal conditions:Pref equity receives higher ongoing distributions but no profits at saleCommon equity receives lower distribution and profit at sale (assuming their is cash flow left over after pref equity is paid and assuming their is profit at sale.In non-ideal conditionsPref equity may receive ongoing distributions less than pref, or no ongoing distributions at all, but the pref accrues.

With a passion for finding undervalued properties and transforming them into profitable assets, they are eager to learn, grow, and build a successful real estate portfolio.