I'm completely new to real estate investing and I'm looking for a second source of income. 

, (2) completes the job on time and on budget, and (3) does a good job.

It is completely up to you and your interests and/or the current state of the property and market. 

I just completed my first flip.

If you negotiate a good enough deal that pays you then complete the transaction with the investor to buy the house you have under contract.

I managed the projects myself, found new subcontractors and slowly pieces together a new construction team to rebuild the projects.In the end, with the backing of my banker, and parts of my project completely redone twice to do things right, I was happy with the end product.

We will be putting $3,700 down, and borrowing $15,000 over 4 years at 5%, which is 4x the interest rate our relatives make on their savings in a bank CD, making both them and us very happy with the terms of the transaction.After closing, we anticipate ~$4000 in rehab costs to bring this very tired unit up to date, which will include refinishing the hardwood floors, complete repainting, new kitchen flooring, new counter top, new appliances, new lights, blinds, fans, toilet, etc.  

(Seller needs the equity out asap, so seller-financing is out)As for the deal itself:       Located a few towns over from me (but not far enough where management would be a hassle), right near the better part of the borough, near the middle school, very close to stores & very close to where new construction is being planned & the area is on an upswing.2 - 2 bedrooms (1150-1200/each)4 - 1 bedrooms (850-900/each)Going inside it this week, but from my walks around the outside, I'm ballparking about 100k in renoSeller asking for 200kTaxes as-is about 6500Seller states all zoning approvals & site-planning have been completed, only thing left to do is pull permits and put nails to woodAs of right now, my immediate plan would be to sit down w/ the commercial people at my lender's, assess my standing, and start all the other due diligence common with a typical, residential purchase.

Very low risk and I completely disagree with the statement that it's high risk.

Since you have already completed the rehab "R" the house will appraise for more than you paid (value add), so you can pull that money out and Repeat.