In addition, the biggest piece of advice I could provide is to ensure your wholesaling activities are highly scalable so you can produce the volume required to get consistent deals.

It can be scalable as equity is built in your houses, and essentially allows you to recycle your downpayments.

I want to build something that is scalable and efficient.

Not saying it's scalable without limits but two properties that are well-managed in Annapolis can pay huge dividends.

I like this method, however I have some concerns about the scalability.

There were a lot of items that had similar cost that are not directly scalable with total sq ft, like HVAC costs (units are small, so there is minimum equipment sizes), plumbing costs, foundation cost, permitting costs, to name a few.The $90/ft2 had nicer exterior finishes (hardiplank vs vinyl, nicer windows, nicer doors, etc) due to historical area building restrictions.  

I understand the point about residential and commercial financing, and scalability.

. :-)Also, it's not just about the money...Personally, my personality suits flips more than wholesales (I don't like marketing, and can farm this part out for retail sales but not on wholesales), so I'd rather do flips even if I made the same amount by wholesaling.Wholesaling is something I could do if I had a partner who could compliment my weaknesses...but barring that, it doesn't matter how much money I could make, I'd be miserable doing it on my own...That said, I think someone who builds a wholesale business in a well-structured and scalable way could do quite well with it...probably just as well as flipping given the same amount of start-up capital...it's just a different set of skills...

IMO, residential is more intuitive and thus why people start there.The reason people go commercial is scalability.

That being said, I think that there's no real scalability in owning out of state turnkeys and would recommend against it as a true strategy.