Would the seasoned real estate investor recommend a newbie to use this sort of arrangement to find investment properties?

If the owner still occupies the property you need to make arrangements with him to show the property.

If you can't find the owner and arrange for that one too (either for your own uses or a wholesale) I wouldn't do it.

If you're leasing it out then you're on the RE side.Leasing that you can go to the sq ft market rents and you can go to a lease plus arrangement where you take a percentage of sales with a base rent.

Boosting the price is what the scammers do, you can fail to meet equity requirements and that can keep you from refinancing as planned based on your contract arrangement.

I love TX for investing and would like to know about these properties you are looking at.I am a full-time professional RE investor and perhaps we could set up a JV, a birdog fee, an assignment fee, or other arrangement and do these together.Contact me so we may disuss this in detail.

I told the long story for a reason.In the 8th month of this arrangement the owners (couple) were away from the country for 6 weeks and obviously the tenants knew this.

Why not go all the way, and lobby the big guys at wal-mart, lowes, home depot, and try to get sponsorship.

Active participation exists so long as you participate, in the making of management decisions or arranging for others to provide services (such as repairs), in a significant and bona fide sense.

I talk to the owners, make the bid, pass the money to the seller, arrange for the closing.