However illegal flipping opens one up to criminal prosecution.All one needs to do is google "illegal flipping" and you will find a plethora of information on the subject, from HUDs 2003 memo and subsequent guidance memos, to Freddie Mac guidelines etc.I think the problem for many on here to understand is that they were not doing business when this was a prevalent occurrence, and the people most familiar with it are probably appraisers, lenders and agents...and less so investors.

One specific question I have with this group and others is what prevents a sponsor from refinancing in the latter stage of a deal and simply returning only an investor's original capital contribution and then subsequently selling the property and keeping all of the appreciation for themselves?

I would also assume that entails having to work and subsequently pay-out part of my commissions to that broker in the event I do close on properties.Any advice from individuals who have had the same thought would be great.....thanks everyone!

These contracts can be skewed terribly in favor of the Owner so that he will foreclose on you for any little hiccup, so protect yourself right the first time and you will know what to look for on subsequent deals.Diligence on the property needs to focus a lot on the well, the septic system, and the mobile home.  

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CPA may charge a little extra for that, but it'll ensure your lender-calculated DTI isn't a mess when attempting to get fannie/freddie mortgages in the subsequent two tax years.

Subsequently, you can borrow from the solo 401k plan.

I have done a great deal of research and analyzed many deals but have not yet made my first transaction other than a primary residential purchase and subsequent sale a few years later. 

Or reduce the amt alloted for each subsequent unit,as your total cash reserve grows?

A Flipper aka house flipper, is an individual whose niche in REI is acquiring property of his/her desire with the intent of not occupying the property, rather creating equity/value in the property, subsequently selling the improved property for material gain; i.e. selling the property for more than it cost to acquire said property + improvement, thus creating profit upon sale of said property.