@Joseph ScoreseThanks for continued explanations....I almost feel I should have majored in financials in college.

That explanation doesn't necessarily make sense though, so it would be great if you know of official IRS documents on that subject.I also contacted the company that did the paperwork for my self directed IRA LLC, MySolo401k, who can recommended by my custodian Ira Services.

Of course the above explanation would only hold true if in fact when you first inspected the property the water was turned on at the water shut off valve. 

Once you have rehabbed it (cost effectively) and rented it out for say six months, a NEW appraisal should come in at least 40% more than you owe on it, which means that your Lender should approve a cash-out of 20-25% of it's new value ie. enough for a DEPOSIT on your next property purchase (and so on)...Others may have a clearer or more correct explanation.

A mailer campaign should be something for you to consider, you or your broker send out a flyer/mailer to every commercial warehouse in the geographic area.

They have a great FAQ and program explanation pages on this topic.

  :)  With all due respect you are incorrect in your explanation of the RE Wholesale Market. 

I realize that you have not seen the property and my explanation is subjective since others would look at it and may have a different opinion.

Ideally this is how I envision the deal (round numbers strictly for explanation):Purchase: $100,000 (20% down, 30-year loan)Rehab: $20,000Sale: $120,000I'd love to keep the loan in place and take the cash from the sale to pay for the mobile homes, other properties, etc, but I have a feeling that is not a possibility.

Thank you for the detailed explanation !