This immediately gives them an advantage over the MLS and is where their profit comes from--not marked up prices.

I want to learn the correct way to buy and profit in real estate.

Eg they borrow at 4% and receive say 7% giving them a profit of 3% for no money down but a little time for the loan app plus the risk associated with repaying the loan if it goes belly up - though with 20% of my cash down the risk is low for them.  

The former because parties are a problem regardless of the length of stay and the latter I presume because short term renting simply moves jobs.And in any case, if we're into real estate for profit we like a bit of a housing shortage don't we? 

., 120%) are the gross proceeds and the basis is whatever you paid for the tax deed, making the 20% profit a capital gain.  

I like that thought, and yes, I stand to loose a profit if I don't do this and yes, the flip should work fine and a plan B is in place as well.

Unless you've tested this and proven it doesn't work, it's irresponsible of you to tell people it doesn't.Real estate investment training is not a commodaty like a laptop or a book, yet hundreds of companies are spending hundreds of thousands a month advertising online to potential club members (I know this from years of direct experience doing this very profitably for clients). 

I'm still very much learning and researching, and thinking maybe contracting out the majority of the work is a better plan.  

I suspect there is a different mortgage or sales price involved to produce that profit.  

It's 20 years later, we've had a major housing recession, and I'm in the Southeast now (Alabama).