No education, no licensing, no ability to file ethics complaints, etc.

I know the guys work ethic and history and not too concerned about his ability to pay.

If you even have to ask this question you should surrender your license now and find a career where ethics really don't matter.

I'm also trying to find out who are the more active and ethical wholesalers.

So in that $257K cost basis there could be $25K-$35K+ in tangible personal property depreciated over 5 years with 200% declining balance accelerated treatment and a mid quarter convention. so depending on the placed in service date either second quarter or third quarter for either 25% depreciation or 15% depreciation in 2016. 

I'm guessing always negotiate if it is legal and ethical.

We aren't sure what the ethical codes are since my partner and I are not agents. 

As far as finding and marketing off market properties (I don't think you were saying this other than auction properties), there are some ethical issues with doing this as a realtor.  

Reported items put the seller in an ethical hot spot should they choose to move on and not disclose the item(s) going forward.  

Could @Lindsey Leemis arrange for her friends to "gift" her money under the annual limits and forego any treatment of the property as investment?