To keep it short, just from knowing him as a friend and knowing the level of success he has, I already trust him enough to put money into his projects, but I know I should be responsible and do my due dilligence.Essentially, a big project right now is a cabin in a very busy vacation spot that is going to be about $2m.

Rougher parts of town have increased maintenance/cap ex, vacancy, rent delinquencies and defaults, and level of effort to manage.  

Once we get through this high-level conversation, we can determine if wholesaling is the right activity to leverage to build your ideal stream of income. 

If it’s only some of the rooms, are they above ground on 2nd floor, ground level, or below ground?

This is just a high level, general statement.Conceptually, selling separately sounds like a bad idea.

In my opinion, the more income you have, the higher the allocation should be towards stock / fixed income.As much as you can make real estate passive(Hiring a PM, getting into syndications), there is still a level of work that you need to do.Why spend hours when you already can afford what you can.The extra return isint' worth it.

Higher Yields: With distress levels rising, project sponsors are willing to offer more attractive terms to secure the capital they need to stabilize their projects.

and am planning to see a few recently built 4/3-4's with finished lower level in good family locations.

I don't know all the particulars, someone more well versed can comment on it, when your income exceeds a certain level, there are limits on your deductions you can take.

Private money, depending on your relationship and level of expertise, could lay between 8-12 percent straight.