The problem is that the public is now educated on what is a cosmetic flip and what is a true renovation, so the cosmetic "lipstick on pig" flips sit vacant while the truly renovated homes in the $150K range sell in under 4 days for ask+.So, 20% margin, less partner cut of 50% and tax/close cost of 50% leave 5% margin for flips.

Double-edge sword, depends on the improvements they do.

If you're in LA and looking to cut down on your overhead, you should consider leaving your firm and getting an entry-level sales associate position at Matthews.  

I found a property situated on the edge of a part of town which used to be a bad area.

Not everyone is cut out for it and not everyone will make it.

Cut all expenses, don't eat out, get a raise at work, get rid of fancy cars, borrow against a retirement account, look for private money.

Try to cut expenses to increase the amount of cash flow you keep3.  

I assume with a SFR the tenant (or HOA) will cut the grass, pay for garbage things like that, in my area I always plan on paying water in sewer as these can create liens directly against the property but you may have the tenant pay that. 

@Sam LiuYeap, that is exactly what I concluded 10 years ago - low return and a waste of time....Glad I was gutty enough to cut loss right away and came back to CA, and had more than recovered all the OOS loss...

Do not cut any corners to make something look better on paper but not in reality.