For someone starting out on their first deal, I don't recommend doing a complete renovation unless you have reliable contractors or have some sort of prior experience.I would of chose a small multi-family property that need very minor repairs (which this type of property ended up being my second purchase).

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.

Chris T.While we are not flippers, we do use a similar approach by purchasing tired properties and forcing appreciation: it is just rehab-n-hold as opposed to rehab-n-sell.When we are carrying out a deep retrofit on a newly acquired property, we will put a sign in the yard advertising another "modern, heathy and energy efficient home in the making"  with an indication of when it will be available for rent.We typically have the units rented before the renovation is complete.

I am trying to completely avoid that model.  

I put on one roof, two complete HVAC systems, one set of gutters, one full kitchen redo, one minor kitchen remodel (floors, counters, hardware), 4 bathroom remodels, full floors in one house, and then the requisite painting, trim, etc everywhere. 

However this being the long weekend, the check did not clear completely until the 7th.

Do you have the cash to complete the project?  

As he mentioned, any additional take home pay will limit his ability to claim real estate losses he already has coming so that would offset part of the investment benefits. 

Although the property I mentioned above is in a perfect location the numbers didn't work as the building has been neglected for so long now requires a complete overhaul.

Just make sure you completely ignore the "Gauge" they use.