For example a fix and hold would still require a 12.5% profit (after all fees, points, interest, etc) in the event of a sale. 

This is due to the function of amortization, stacking your monthly payment with much more interest than principal in the early years of the loan.

You could easily post your vacant lots on flat fee MLS like list with Freedom it will cost you about $99 bucks or something.

Interest only loans allows them to get a goal profit of $500-$600 per month per property.3) Each acquisition would require 20-25% down at an 80-100K purchase price. 4) Closing costs, and the Eric Spofford turn-key transaction fee of 10K would be in addition to the down payment and were not included for the purposes of calculating the cash-on-cash return.

I've heard from some who swung for the fences because that's how they presented projected returns that differentiated them from other investment opportunities, others were in the business of transacting and had to find deals that could work to  keep the lights on and keep the fee machine running, others struggled to raise equity and were forced into higher leverage debt to fill the capital stack along with a ton of other reasons why a sponsor may have elected to go with the riskier debt structures. 

When we consider the home payment to the landlord, taxes, insurance, HOA fees, maintenance and property management, we figured we'd have a better chance of generating cash flow going this route.Currently we're using Zillow and Rentometer to determine what we could potentially rent out the place for which as of the time of this post would be around $2300-$2400 per month for our 2 bed 2 1/2 bath townhome.

The main drawbacks are the fees/rate & the prepayment penalty. 

Connect with local wholesalers and work to help JV with them to dispo their inventory. 30% of their assignment fee isn't a crazy ask for bringing a buyer. 

Whats the fee? 

HOA fees & special assesstments can kill cashflow.