Probably because they ran out of money or they had no business doing a rehab to begin with because they did not have the skill set for it.

You are in a good location, especially with your skill set, to do well in the rental world. 

It is a different asset class than a single family house and takes a different skill set to deal with.

I guess spelling and grammar skills aren't a job requirement.

While compared to most agents she was great, she didn't do nearly as much as we wanted to be done or that we knew we would do ourselves.So, after our second deal, my wife got her license and we never looked back...it was the best decision we've made in this business...Here are a couple more articles that will explain why...My biggest investing philosophy and why having our license makes tremendous sense to us:http://www.biggerpockets.com/renewsblog/2010/02/10/controlling-your-real-estate-deals-manage-catastrophe/Pros and cons of getting your license:http://www.biggerpockets.com/renewsblog/2010/02/24/should-you-get-your-real-estate-license-investors/Do you have what it takes to be your own agent:http://www.biggerpockets.com/renewsblog/2010/03/03/traits-of-a-great-real-estate-agent/Personally, I probably wouldn't make a great agent, but wife has all the skills.

Jeff Skilling, like you, can rationalize the lie.

Why would positive cash flow drive anyone to bankruptcy (unless, of course, they didn't know how to manage cash flow, which is a key skill for all investors)?

Even if that's the entire profit from the first deal, if you believe this investor has the knowledge, experience and skills necessary to teach you the business, it sounds worth it to me.And clearly he believes he can help you, as he's risking his time and energy with you for potentially no pay-off (if there is no first deal for you).

I have been involved with several investors that flip homes and seeing them be successful has motivated me to braoden my Real Estate skills.

You have skills that perhaps many Realtors do not, it's not really a Realtor's job to fix things, get job cost estimates, line up contractors and make improvements to a property and either you or those you work with do!