The receiver has every option to ignore receipts and neither you nor they see that choice.

Finally, make the math hard on yourself and shop for cash flow only, and ignore appreciation.

Is it OK if i just ignore wholesaler B and contact wholesaler A directly?

I ignored that.My plan is to file for an FED tomorrow morning.

At least if they do find out you have an illegal unit, you can offer your alteration as a possible solution and claim ignorance, vs blatantly ignoring today's rules to put in something equally illegal.

(Uhaul for $19.99 a day)Another option I would consider is selling it for $22-25k on craigslist (People can finance vehicles even if they're purchased off Craigslist, so it's a good possibility they can come up with that money) - and then turn around and buy a fuel efficient truck, such as the Toyota Tacoma (My favorite are the early 2000's which can be had for under 10k)Ignore the future family concern for now.

In retrospect, all of the negative experiences we had were largely due to ignorance as land lords and property managers.

sometimes...you want the first deal to go through badly and ignore certain warning. thanks guys. appreciate the honesty...back to square one...

Assuming I'm reading the BP calculator output correctly ( I haven't used their spreadsheet), the cashflow and COCR look unattractively low, for taking the risk of investing from across the country.I would also completely ignore the city assessed value. 

The Listing stated that there were two Duplexes or a Duplex and a House on that property, but, the picture only showed One Building and apparently, everyone ignored it.