All in all with cleaning fees, supplies, minor repairs and upkeep, mortgage and HOA (25% down on mortgage) all expenses are covered and see a cash flow of $2-5k/year.  

They may also supply their Schedule E, which is the income they report to the government.

We don't start in the morning and go grab materials at home depot in the afternoon, we have materials delivered and we pay delivery fee, client eat that bill to give way to our convenience, two dozens of 40-70/trip could be avoided but we rather spend time making the 1-2 hour trip to the supply store and work on our clients project, we know 2 hours of manpower is much more expensive than $40-70.

He instructed me to find a real estate agent who can supply me with a list of properties in distress (fixer uppers).

Mileage, computers, supplies, business meals, etc that are for business purposes.When your LLC spends one dollar it has the buying power of about 1.3 dollars since you are spending pre-tax money.  

We're talking about significant monetary contrasts between down-payment, DTI (debt-to-income), and other variable stipulations. 

I'm not sure this is a good question to answer in the FAQ though, there are many variables and the answer can be Yes or No, depending on where you are doing it, if you're licensed, how you're structuring the deal, how it was presented to the seller, and how its advertised.

Hello, I am in the process of buying a house and doing a remodel non-cosmetic flip. Normally I just bought my materials from big box retails stores (Home Depot and Lowes) but I have realized that specialty stores ofte...

Don't be discouraged, the Boston real estate market has a lot of competition right now and in my opinion is in a sellers market so there is little supply and prices are high.

I understand that I would need to seek information from some other local brokers to determine what the actual market cap rate is, and make an offer based on that and other variables like @Jeff Copeland mentioned.