Underestimating repair costs and overestimating ARV (this is really just what most people call wholesaling). 

If not, then your W2 hours do not qualify for REPS even if directly related to real estate.Quit this job of yours and start wholesaling instead

I dont' think this is any different than wholesaling- it's a chicken or the egg thing.

Rentals and wholesaling are two completely different business models.

I have been wholesaling for about 3 years off and on. 

What you are calling wholesaling as a business model, sucks.

Our goal is to expand the business strongly in residential wholesaling, and grow the fix and flip part of the business.

We have tried wholesaling with off-market campaigns such as direct mail and SMS.

I have a buddy locally from Indy who's wholesaling up there. 

I have no idea on how any of that works, but if he is serious about getting into RE and if that's what he wants to do....then do it. 1500/month is about minimum wage, I don't see that much risk in taking the leap into wholesaling if that is what he stands to "lose"