If you're not comfortable with this risk or don't have access to the capital needed you probably should use commercial loans instead and live with the downside of them having higher rates and higher loan constants.  

@Patrick Rowe, that's a rather pleasant quandary to have: do I want a quick $35k profit, or do I want an EXTRA income stream of $175/m, forever?

I listen to the podcast to and from work or any other time I get in the car, attend the webinars and read on the site constantly. 

When it comes to real estat my short term goal is make all the good choices that will allow me on long term to achieve a solid stream of passive income in order to secure my financial future.

Legislation, likewise, is constantly being revised.That said, though, yes - learn it first before you try to do it.

I got the publisher on the line a few years ago (Sherry Clevenger) and she explained that NADA only makes note of the initial sales price of the home when new, and then apply a constant depreciation amount every year.  

It suffers from scalability issues in the sense that in order to be profitable, you need to constantly have houses in the pipeline.

Or all of the above to get several streams going. 

I have thought about residential rental properties, but most of the rental market is low-end and with my work schedule, I fear that it would be more of a headache than a revenue stream.

When one dries up you have multiple additional streams of leads trickling in which adds up to a decent deal flow.