Like Ali, I am also failing to see how another losing proposition, such as a 775k duplex, is going to help you.I see you are in CA, where values never go down ;) but do remember that equity is never 'real money' until you sell.

The wholesaler's main value proposition is they bring deals to the table.

That can be an expensive and time consuming proposition, so you want to make sure that they have this.  

factors take what looks on paper to be a good investment with positive cash flow & turn it into a losing proposition?

So what advantages and disadvantages should I be considering with this proposition?

The other is commercial proposition I've found a very accessible building for $225,000 it appraised for $402,000 in 2012-13.

The plus sides are the house has no HOA fees but Im unsure of the realistic proposition of renting without losing money.

Why would there be bargains, if everything sells for full price in a very short time.Now if your financier insists on buying property, fully aware we are late in the cycle, and wants to gamble on appreciation in a highly cyclical sector then fine.A multifamily with no mortgage imho would be a much better proposition for you both as it will throw off cash and survive a change in conditions easily (without a mortgage)It wont be a bargain, but relatively safe

With the simplified proposition of the vacation rental market continuing to develop, the "value" of a property may be higher in some markets. 

For a beginner to deplete there IRA or 401k to take a shot at RE is a very risky proposition as you are trading professionally managing index funds or whatever you may be invested in to a beginner with no experience.I would say keep your IRA and or 401k and save after tax dollars to invest in RE.