I do not need to make a big profit but do not really want to go through the hassle to lose money.Thoughts?

@Surendra Chawla No I have not, but I have lived in Chandler many years ago ('00-'07) and have owned a SFH there (5 mins to Intel at Ray/Rural) which yielded a nice profit back in the day.

In 5 years, the novice investor will have paid us $39k (a small profit for us) and will then own the home.

Problem is banks do not like tip income and also I have many expenses for the business so it doesn't show much profit, even though many of these assets (truck, commercial mower, etc) will be paid off over the next 1-3 years.

Somehow I had never heard of this before and kind of stumbled on the info while talking to my lender how some of the flips I'm doing (thank god I did too).The flip rule prevents flippers from selling their projects for a profit for the first 90 days, beginning from the day the deed is recorded.  

Sell for under market value where you still profit.

But depending on how much you take out, your property may cash flow the same ( you are financing more but spreading over more years, so payments may end up being close to what your paying now) you will get another property with income that may be your profit. 

My goal is to build a solid portfolio of rental properties and supplement the portfolio with fix/flip profits.

:Should I 1) sell now, reinvest and get a better cash flow immediately (after a break even investment over 18 months); 2) hold off until I can sell for atleast some profit, or 3) Sit and wait (buy & hold)...and assume/hope appreciation will come though in a growing market near Austin (keeps some diversification as well)Id like you hear some feedback.

I would suggest looking around and seeing what kind of companies operate in markets you may be considering.Try looking at:What to Ask When Working With a Turnkey ProviderandThe Best Types of Markets for Profitable Turnkey Properties