One thing I don't understand is why they don't just take investors like me out of the equation and maximize their profits.

I side with the prespective that a lot of others have already provided within this forum; however, I did not hear the obvious/ traditional beginners method/approach mentioned.That method/approach being: 1.) obtaining a good deal which equates to me at a minimum of 10-15% (the more the better) below market value based upon CMA (this approach protects you in the case of a slight market downturn)2.) utilizing the business line of credit of $50k to make the 25% down payment (this down payment helps enhance the profit spread you will be able to collect each month in rent from your tenants minus your mortgage and loan repayment)3.)

If you were to add inflation also to the equation, then after 30 years the very rationality of waiting that long then becomes a serious question.If 8.5% seems high for a conventional mortgage, mortgage rates in 1984 were in the 13% range (18% in 1981 and still in double digits by 1986).

Not much translates to real estate besides working with tools but the effort necessary to get through differential equations in college certainly helped my work ethic and "stick to it" attitude which is a must in real estate.

Your not dealing with hud.. single mother 4 kids type of properties which are management intense and not generally recommended without PMso cut that out of the equation.. then just look at  1 month vacancy... your actual expenses. put in 2k a year for maintenance cap ex that should be sufficient and see where it shakes out  Tax's and insurance of course so your 3250 rent my flush out like this200  maintenance  capex200 tax100 insruacne200 vacancy1800  mortgage   =  2500 a month   add another 250 for contingency and your at 2750 or 500 a month positive and maybe your at 750.. with a west coast asset that should be much eaiser to handle than many others.. ( I say should) never a sure thing.

There are better ways to do this than others and taking into account someones intent should be part of the equation so as not to blow issues/situations out of proportion. 

Adding children to the equation would make this an even more important question.If I get to the point of evaluating whether to go full time in real estate (which is a long term goal of mine), this will defintely be an important consideration for me, especially given the fact that my current company provides a very good insurance plan.I'd be interested in hearing how full-time investors are handling this.Thanks,Kyle

You also need to take all emotion out of the equation...

The downside to flipping is there are limited tax shelters and paying tax is part of the overall equation.

If you understand how the numbers interact you'll feel more comfortable in your evaluation of the deal and it's risk/reward and it's overall "value".Word of caution, just because the numbers make sense that's not the entire part of the equation... but it will help you narrower down your search.