There ARE so many right answers to your question.I feel that you can find profitable flips in any almost any area with proper marketing, due diligence, and proper project management.  

The area you should consider speaking with an attorney is regarding the purchase of the home and ensuring title is accurately placed within the LLC.

Hi @Kevin Darrell, yes we back up everything we do with a 100% guarantee to ensure that our clients know we are accountable to them during every step of the process.

Business wise the smart move is to get a permit and build a proper separate unit in the basement.

If the business entity taking out the loan is properly set up (no humans anywhere in the ownership chain), the acquiring entity's credit alone may be enough to put the deal together if the entity has a strong enough credit profile and financial statement, and sufficient cash is available to balance the lender's maximum LTV against the purchase price.Just a starting point ...

With a great market they start getting more competitive with creative financing options for your first investment property much like the prior advice things like lower down payments are an option.Find the absolute worst dog of a home in a decent enough neighborhood (ensure it doesn't need to be condemned and no structural, meth, or mold issues that will supersede the overall benefits of it and flip it for a quick chunk of change).  

Har has a free class that will show you how to pull a proper comp.

Remember: you're only living off the interest without reducing the principle to ensure you don't "run out of money".

Keep in mind that the auction process is just part of the legal requirements for the lender's collection activity of last resort - and that the auction process is somewhat designed so that the lender can "solve" some of the issues by following proper procedures (for example, IRS liens can be left with just a redemption period if proper notice is given to the USA that a foreclosure will happen and extinguish the IRS lien).

Make sure you are protected with a recorded mortgage, that the property the mortgage is recorded on is worth more than you loaned, and that the property is properly insured.