More than that, we know that we can ruin our own markets.I can understand a euphoric rush into single families. 

My friend could open an account with a thousand dollars with any of them and in a month he would have ten thousand, playing online Poker.

In the market I'm in (Denver Metro) there is so much competition that you have to not only show your value but sometimes beat out competition which can be extremely difficult when other investors are always willing to offer another thousand on top of your last offer.

I do believe that there is money in flipping, but I don't believe it will pay enough to sustain the company, unless you are doing hundreds of thousands in renovations or if you do at least an REO and not a 5k renovation budget.

You are competing with hundreds if not thousands looking for "deals" on the MLS.

As far as finding a deal networking around the facebook and meetup groups can help you meet people that will find you deals to save you tens of thousands of dollarsGood luck in your real estate journey!

Post on craigslist, it is free advertising... great tool for people just starting off and not looking to spend thousands of dollars a month on billboards that say "I buy homes for CASH".Connect, connect and connect some more.

They already have contacts with service providers, contractors, that can help you fill out your team much more quickly.As far as what to pay for such services, you can go a thousand different ways with that, and will need to negotiate depending on the extent of services provided and time spent.  

My additional two cents about new construction:Lower maintenance costs / capex at beginning of the house's life, unless appliances break down after warranty (somewhat common with cheaper builder ranges & dishwashers).Additional costs for new home needs to be factored in, e.g. blinds/drapes (can be a couple thousand $$, landscaping, fence painting, appliances (e.g. fridge)Thus, can be good if you want low headaches, but presents less value potential than finding something a little older/cheaper.

It's very common.If there's enough parking onsite, it's not too bad to get the living space in the garage permitted (couple months, couple thousand dollars as long as work was done correctly).Trying to get an additional dwelling permitted won't happen... even if it was built when the zoning supported it, and you can prove it, you'll need a variance - long time, lot of money, risky.End of the day, lots of properties change hands that have non-permitted  things, and that property will be bought by someone who will get a good rent from the studio.