Well I am going to disagree.An alternative to wholesaling is to do a joint venture with the home seller, where you don't buy it but offer to do a mild rehab, let's say a house that needs updating, MILD REHAB, "grandma's house", Say Arv is 200,000, needs 20,000 in work, I like probate houses for this, the heirs want quick solution.Offer this to the seller, Mr Seller, we will do a joint venture, I'll come in with my money and do the rehab, pay the workers pay materials, then will use my agent to sell, pay the commissions and the closing costs, and then when the house sells I'll get a check for what it cost to do the rehab, and I'll charge joint venture fee, and that fee depends on a few factors.The mechanics are buy it sub2 or a note w no payments, own itGet private IRA loan for the $20KPlace guaranteed profit JV agreement for you and the sellerThen improve it - list it at 97% of comps with a high producing agent - work with agent on improvements as far as what buyers want."

My hang up here is not that I'm scared by mild inspection results, but the results are major: corroded and damaged pipes and stacks, a 150 amp panel that needs replaced, knob and tube wiring on 2nd floor, uncapped gas lines, improper supports for joists, water damage between attached garage and house, etc etc etc.  

Property is in need of mild repairs.

While note investing and tax liens seem mildly interesting, I'm not interested in trading the passive investments I understand for those I don't.

Main point is the brand you install Trane, Lennox are overpriced, Goodman if installed correctly will last just as long.Heat pumps too far north really is not a good fit, best fit for mild winters.No need for the top of the line Goodman in a small rental get the right model.

I don't plan on doing this right now as the economic indicators point to a few more years of upside (not counting a recession in 2018/2019, but that one will be a mild one).

@Deanna McCormickI've been mildly surprised at the number of people who incorrectly cite Minnesota statutes as saying it is illegal for the landlord to withhold rents from the damage deposit.  

The only questionable criteria would be the weather... while the summers get hot and the winters are mild, we still experience all 4 seasons.

Even with the mild Bay Area weather, 6% property management fee, 1.4%-1.5% property tax, and $300/unit for insurance, 5% vacancy, we still came up with 40% for operating expenses.

I am mildly handy but wouldn’t want to spend more than a few hours on it.