Lenders desperately need/want business especially in this interest rate environment (right now, the main source of mortgage loan business in Florida is rehab financing as a result of the hurricane damages) and one way the big players differentiate themselves is by streamlining the process.

Hey Joshua, I own a property management company in Maine.

Plus they will now have to make FULL disclosures to both buyer and sellers and there will be a full 3 day right of rescission. the main reason wholesalers dont get licensed is so they dont have to follow the rules like a licensed agents.. in other words they have Zero fiduciary duty to the seller or buyer.. 

I would target a 2.5x equity multiple and 8% cash on cash return, but I would focus mainly on the operators and try to figure out if I believe in the team and vision, and really try to understand if I trust them or not.

Two main reasons being: (1) debt does not increase your basis in an S Corp, which means your losses get limited.

One of the main issues is insurance companies NOT insuring many of these areas.

@Dave Meyer had an interesting episode on the BiggerPockets Real Estate Podcast about 3 main resources when it comes to investments: cash, time, and experience. 

Hard money lenders have a good amount of flex when it comes to FICO score and typically the main issue that borrowers with low FICO's have is that their max loan size gets cut which doesn't seem to be an issue here.

So that area is based mainly on ease of longer term (ish) rental income, with about 2-3 years stability depending on how often people PCS and the (somewhat) quality of tenants (bc you never know, even with military).

Usually OH and IN are the two main states they I have seen booming business in for 204 unit REI's.