As a wholesaler, would you wait and attempt to contract with the seller at a later date or would you just ditch this house and keep going?

In my opinion that is the best way to go especially early on because they will do deals that larger banks will not by underwriting based on character as well as the other criteria.

Either they are a fool or you are, or perhaps both, but not neither.I won't even begin to get into the gaping flaws in your logic about valuation ... that shows either ignorance on real estate valuation or an attempt to artificially pump up values using valuation methods that are not valid.

They 5 are: Character (reliability, integrity), Capacity (sufficient income or cash flow to service the debt), Capital (the borrower's net worth or how much of their own money they put into the deal), Collateral (the value of the assets that secure the debt), and Conditions (the borrower's situation and the state of the economy or local real estate market).

Attempts to negotiate a higher rent is hopeless. 

And @John Chin, I want to be a real estate investor because I think I have the mindset, character, and drive required to become one.

layers) and essentially did a full gut rehab, including correcting some structural issues caused by an attempted "fix" of a bad tub surround in the shower.

A real estate broker, for the purposes of this article, is defined to be a person, firm or corporation who, for a fee, commission or other valuable consideration, or by reason of a promise or reasonable expectation thereof, lists for sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a sale, exchange, purchase or rental of real estate or an interest therein, or collects or offers or attempts to collect rent for the use of real estate or solicits for prospective purchasers or assists or directs in the procuring of prospects or the negotiation or closing of any transaction which does or is contemplated to result in the sale, exchange, leasing, renting or auctioning of any real estate or negotiates, or offers or attempts or agrees to negotiate a loan secured or to be secured by mortgage or other encumbrance upon or transfer of any real estate for others, or any person who, for pecuniary gain or expectation of pecuniary gain conducts a public or private competitive sale of lands or any interest in lands.

I will attempt to be brief but informative.My wife and I are both in our mid twenties.

I have never attempted real estate investing before (except to buy my own home).