Hello everyone,I've joined Bigger Pockets to finally jump start my interest in Real Estate investing.  I'm looking to absorb as much information as I can from all the members and acquire my first property shortly.  I'...

It is criminal trespassing in the state of Maryland.

This sounds like a outright fraud and criminal case best pursued thru the DA and Bureau of real estate as @Andy Cross said the 3 most important words in a real estate transaction is escrow, escrow, escrow .

I like the cyber Harvard Law School site, the American Bar Association, Cornell University Law School, look to the American Land Title Association, Appraisal Institute, HUD, the NRA has good stuff too. 

You might want to have some confirmation regarding criminal records, drug offenses and sexual offenses of the occupants - you might accept the employer's checking of this but reserve the right to perform your own for verification purposes. 

And since we care much less about the top line, and much more about what's left of it after expenses, we should likely base out valuation decision on that NOI figure - 2% rule does not do that, which makes it criminally incomprehensible as an analysis tool, let alone a "rule".In order to use the NOI as the baseline income we cross over to the capitalization method of valuing property, whereby the NOI is capitalized via a multiplier know as the capitalization rate to arrive at a valuation.Finally, to Bob's comment, since cash flows are not static and must be discounted for time, inflation, and opportunity cost, a complete analysis would underwrite to the IRR (internal rate of return), which would take into account all of the movement of cash, including the exit which captures the appreciation and rent growth, if there are any.

I would base my decision on how recent his criminal arrest is to now.

As far as criminal I'm thinking no felonies.  

I don't know this area well, but a quick driveby doesn't show any obvious signs of lurking criminal activity.This is an agent-owned/listed property so you might want to have your own agent represent you.

But, I'm not arguing that what is taught at most guru seminars will likely skirt/break real estate code; the question is more whether wholesaling can be done in a legal manner that is relatively free of risk from civil or criminal penalty.