Pretty easy to not check this and have a failure after you close...

With 400K my initial thought is doing a BRRR/Flip that is close enough for you to be hands on.

If you're looking to connect I am happy to chat about this market and find a property within your goals.

Let me know if you need help connecting with local resources or tools!

I have several close friends who specialize in audit representation so especially in the wheelhouse of real estate audits I get a good amount of feedback on trends. 

happy to connect and help you on your journey!

The property sat on the market for a month before an offer came in, but the buyer backed out at closing.

That's the only way you will know if it's legal.In a true wholesale deal you are putting the property under contract, then either assigning your contract or double closing. 

I'm having to offer this as a fully furnished house to be able to charge a premium on rent just to get close to the mortgage.

I know that i could buy my next multi family property as a primary residence close by move in, rent half live in the other and than rent where i am now which would cash flow upwards of 1k monthly, or i could buy another multi as strictly an investment property out of state which would be a lot cheaper (taxes and cost of property) and a lot more landlord friendly laws than New York, i guess i’m just undecided on which route i want to take and I’m trying to weigh the pros and cons of each scenario.