But it continues to puzzle me whenever I hear a new investor telling me that they want to get MFH to start without much exposure to REI. 

I feel love we are missing a piece of the puzzle but we keep plugging away!

Sounds like you have two important pieces of the puzzle.

Just seems strange people hate people who ask for money for knowledge (gurus) but that’s happening with even some of the most benevolent names in the field, even bigger pockets big names.Just not sure if this becomes a “just fall in and you’ll learn” type of thing or if I’m missing some good starting point for someone at my level who knows quite a bit but just doesn’t seem to be putting all the pieces of the puzzle together yet.

You next step is to start calling local people that hold the keys to the different pieces of the puzzle and start putting it together.

Great story, the only puzzling piece is that the seller did not call you back and explain what had happened and thank you for your insight, perhaps a deal could have been struck with you, although I can see how the emotions took over and the need to punish the foolish person who called himself an investor.Let this be a leeson to anyone who is intrigued with becoming a wholesaler, learn the ropes and do things right or make a bad name for yourself and likely not make any money, just enemies.

Of course, my knowledge of the market helps here but, irrespective of that, the daily rates I've been getting have been so low that they were a no brainer anyway.This is a real puzzle for me.

I also am puzzled by all of the Californians investing in out of state turnkey for "cashflow." 

The other part of the puzzle is to check out the Housing Authority you will also will be working with   Inspectors (and yes, your rental unit will be inspected on a yearly basis) can be reasonable or a royal pain in a low spot to deal with.If possible avoid what I describe as "possum women" (in both the Section 8 programs and dealing with individuals). 

But in reality, only a small percentage of people are willing and able to play the game, so there's enough to go around and there's no need to rush.Second, the ongoing cashflow vs appreciation question/debate is, well, puzzling, because I think it's pretty much been settled by David Greene, the host of the BP podcast.