But I purchased land in cash and leveraged it to build a new construction stick built home.

Perhaps sellers do not contact wholesalers at all?

I think you just have to work it in as the cost of doing business. 

Your numbers look good on paper, but do they reflect reality?

The numbers need to work to do the deal for sure. 

Do you see a model like this catching on?

I'm trying to Figure out how to make this potential deal work.Seller wants to sell but not right away because they still use the house for some income.  The Mortgage is paid off. How can I strike a deal where they can...

From sourcing turnkey rental properties to finding long-term residents, and comprehensive property management, our expert team offers a full-service solution for a truly stress-free investing experience.

It never hurts to talk. 

Then progress to permits and then building.You could also just do it and hope the city doesn't notice, which they probably won't.Your challenge will be getting Certificates of Compliance on the units!