And I am sure as we get more and more properties, then we will be less able and less inclined to do those things.But end of the day I think a little bit of compassion goes a long way to maximizing profits. 

You need a ARV north of $1.25 million to make that profitable as a fix and flip. 

If it won't cashflow with the higher debt structure on a refi, then you're looking at renting as is, or selling and using the profit for a new property.

So I would be in it $405k making $25k profits from rehabbing then profits from increased rental revenue.

My educated guess is that they are done by local house wholesalers hoping to make a profit, but are they something else?

That goes both ways.I don't like giving away 50% of the profit to anyone.

However, profit from flips cannot be exchanged (legally) so you'll have taxable proceeds at the end (assuming all goes well :) ). 

@Mark HughesAs long as you are not flipping real estate inside your 401k plan, it will not trigger UBIT. https://www.irs.gov/charities-non-profits/unrelate...

Also, there are exceptions to the withholding if: 1 the house is the primary residence of the seller and profit is less than 300k.

If you can get your hands on a small multi, holding the property until the neighborhood is ready for condo conversion can be extremely profitable.