I have made lots of calculated but risky decisions based on knowing my family, wages, living expenses etc.

However, the tenants are claiming sickness and lost wages.

I have no idea on how any of that works, but if he is serious about getting into RE and if that's what he wants to do....then do it. 1500/month is about minimum wage, I don't see that much risk in taking the leap into wholesaling if that is what he stands to "lose" 

Here are a few tips that might help as you get started:Market Analysis: Since you're open to out-of-state investing, look for markets with steady population growth, job diversity, and a balance between rent prices and local wages—those factors often hint at stability and demand.

And these weren't high income earners, unlike the buyers today.

They tend to be very high W2 earners with significant assets, and they feel like they would be a target if they knew their identify.

If the STR is placed into service at the end of the year, they can use the paper-loss from the STR to 'potentially' offset other forms of income such as wages, interest, dividends, etc.Best of luck

It lowers wages for us, construction wages have not gone up since 1960 likely due to illegal immigration.

Keep in mind that residents in communities with a lower cost-of-living (thus lower-priced housing) often make a lower average-wage.

Passive Loss Limitation: If your adjusted gross income (AGI) is over $150,000 (not 80k), the IRS limits Passive Activity Losses (PALs), which means rental losses, including depreciation, generally cannot offset other income like W2 wages.