I grew up in South Carolina in asmall town called Timmonsville.I am a college professor and the drummer in an 11-piece bandthat plays party dance music from the 60s, 70s, and 80s.My goals are to get back into the real estate game full hog and do it better this time :-).I would like to start with buy-and-flipping and later add buy -and- hold rentals.I am open to other techniques but wanna stick with one before movingto another.

Now when you speak of cashflow, you mean you taking the house, and renting it out to tennants, correct?

Trendy high end condo type houses would logically command a higher sales price, and even if the profit remains the same, I'm sure the properties will move extra fast if correctly priced.

The large developers I know already have relationships with banks and get better financing with a phone call.Aside from that - so a person is looking at 40-60k in rehab costs correct?

If I'm reading your questions correctly (I'm pretty sure I am) then the answer to both is NO.

Please correct me if I am wrong.

If you want to fix that, go back and file corrected returns and pay the taxes and penalties that are owed.

Correct?

Done correctly, these properties offer fail-proof investing – plus the income (rents) is indexed to regular living costs, which provides protection against inflation.

Of course there is always the exceptions and if you have the ability to buy correctly to avoid/minimize the risk.