[quote name='uli2000']um, remember thats no STATE income/corporate taxes. You still have to pay federal taxes. Plus, Im sure these people looking for easy money at home dont have the knowlege, capital, or credit to flip houses. Also, many real estate markets (especially some of the really hot ones just a year or two ago) have become very soft, and flipping a house instantly may not be advisible. I wouldnt even consiter it unless you have 12+ months of house payments avalible in liquid assets.[/quote]
Which is why I tell them that these are only the beginning steps and they need to do the research if they're serious about this. And I never once mentioned flipping. I follow the Warren Buffett mindset and do long term investment personally (predominantly buy and hold *indefinitely if possible*) and mostly commercial properties. I'm actually glad about the subprime mess since it filters out many unqualified buyers which leaves room for serious investors. And with many buyers out, it means it's a buyer's market and I can cherry-pick good properties for very little. But your last point is most definitely correct. If you don't have a year's worth of house payments liquid, wait until you do. But, in my estimation, it is one of the most rewarding profession should you be successful in it.