Pick up a copy of David Green’s book the Long Distance Real Estate Investing.  

Especially in hotter markets like Sacramento.Back during the crash, banks were dying to get this inventory off their books and recoup what they could, and so you could buy them for pennies on the dollar.But eventually banks got hip to the idea that the public started to think REO's were automatically a good deal, and combined with a booming housing market they're selling at full market value now.

But if you still wish to pursue this route be sure to work with qualified and experienced professional who can guide you so that you are staying out of trouble with the IRS. 

I started on podcast 1 and I am up to 130 (took a break to read some books written by podcast guests).

Also, you should check out the book, ""Long-Distance Real Estate Investing".

If you are only flipping a handful of houses a year, you can probably get by with a spreadsheet, but here are some important items you need to track/consider for tax season & business management:Tracking Project Expenses & Revenues to calculate your project Net ProfitTracking Assets/LiabilitiesProfit & Loss Statements showing Profitability of each projectTracking how much you paid each vendor/contractor for filing Annual 1099sActual vs Budget Tracking so you can see what repairs were over/under budgetBank reconciliation to make sure your accounting books match your bank statementsProvides a history of the business, so you can track financial progress or pull past financials in case of an Audit

There are also several good books out there that walk you through from A-Z. 

I would start with @David Greene book. 

I went back and filled the back of my car with the "essentials" (old photos, books, etc.) and spent 2 hours at a flea market selling what I could.

I just received "The Book on Flipping Houses" and "Flip" in the mail this week, so I will be diving into them.