Do you feel that there is a significant risk of property values dropping while you are in the middle of a flip thus depleting profits and potentially resulting in a loss?

Returns & profits can be huge, however so can losses.  

A good financial advisor will be able to provide better returns than an index in bull markets, and mitigate losses during bear markets.

It can also mean huge losses.

Part of an entity structure properly designed for asset protectionI wish I had a list of all the BP posters who have asked for an example of how not being structured for asset protection caused a loss - Jeff's response is classic, and I'd point them to it.David J Dachtera

Remember, too, that it bites to return to the States, in terms of loss of COLA.  

But the vacancy/ collection loss risk can eat up these "paper profits" pretty fast, along with the older housing stock issues in general... which just run higher on maint. 

Go on a diet, this reduces your caloric intake and forces you to eat less meaning you spend less at the store.

If you're trying to keep everything conventional lenders are going to want to see income and not losses.

.$50k down payment Loss of $1,100/mo for 36 months = LOSS of $39,600 So, now you move out.