They don't have to go hand-in-hand.I would imagine that Yahoo ranking was talking about flipping in terms of buying, fixing up, and reselling.

If it works out well enough for me I will get a LLC going or should I just start one for reselling anyways for my first property?

Tim Sughrue, the route you go is going to depend on several factors.First, if you are considering being a REI long term, are you seeking buy and hold income properties, or are you wanting to rehab and resell, or both, or other?

You dont pay sales tax if your reselling the drywall.

But I was thinking to offer him 25k-30k and reselling to an investor for 50k.

In that case, you could pour all the necessary money in to fix this junker up/gut it and start over and maybe re-sell, but that reaaaallly depends on the area, the market, and comps for the type of house you would be basically building from scratch in it's place.

I don't have time to go into details as I am at work, but there were many many factors much more responsible for the crisis than people who bought a second home with intent to resell.

They do a lot "reselling" from other "investors" who bought, and now want to sell.  

If you are in fact purchasing property in order to remodel and resell you are likely going to be considered a contractor under workers compensation law and could absolutely be found liable just as @John Lapointe suggested.

So it should be known what I'd like to do is purchase "subject to" then re-sell.