They may uncover some things a GC may not even notice, and in the case they find something major that $400 investment could save you thousands if you choose to back out or re-negotiate the purchase price to reflect those damages. 

Direct Mail, canvassing neighborhoods, driving for dollars, bandit signs, wholesalers, HUSTLE is what you will need to uncover viable product to capitalize on.  

ANY flaw will invalidate BOTH.Sounds like a section 8 and there's still one agreement with full rent.

I think there might be a flaw in that logic.

I think there are some fundamental flaws with this suggested strategy.

In my mind I have three options (I am sure there are more but these are the 3 of the more obvious ones), I can start doing some direct marketing (plan is to start that around the middle of Dec/beginning of Jan), driving for dollars or get in with some wholesalers and hopefully uncover a deal with some meat on the bones.Any suggestions other than those laid out to help try and uncover some good opportunities?

This is why I turned to the BP community to help me find the flaws or considerations before I pull the trigger.Thank you!

Although an experienced note investor may have plenty of knowledge on how to uncover opportunities, at least for me, the challenge isn't finding a $10k investor but rather finding the time to pursue more opportunities.Also, the liability to the experienced note investor is quite treacherous when taking on a non-accredited investor.    

Scott, my position is that banks' underwriting models are seriously flawed and that banks create booms and busts in real estate and I have written a whole 200 page book to outline the problem and recommend solutions to eliminate booms and busts in real estate forever with the engagement of private money.What position are you taking then?

As long as things stay really tight we probably won't have many buyers and thus prices will remain low.Unfortunately the assumption that all else being equal is always flawed.