I guess that's the distinction but the renovation schedule we are putting in is designed to not have to touch these buildings with CapX for 10+ years thereafter.

@John Warren yes, that's a good distinction.  

In my friend group, nearly all who rent could afford to buy.... renting simply fits their lifestyle better at this point in time....I think that's an important distinction.... it's not that millennials can't purchase a home.... it's that they choose not to. 

RESPA Rules on AgentsSection 9 of the Real Estate Settlement Procedures Act prohibits sellers from conditioning the home sale on the use of a specific title insurance company, and in fact violators can be subject to penalties, with the most ­typical being a fine of up to three times the amount of the title insurance fee.Section 1024.2 of RESPA says a “required use” exists when a person must use a particular provider of settlement services to have access to a distinct service or property, if the person will pay for (or pay a charge attributable in whole or in part to) the settlement service.It’s not considered a “required use” if the seller offers to pay the buyer’s title charges.

Structuring you affairs in this manner, your out of state holding LLC does not fall within California’s jurisdiction and is immune from its enforcement actions.Also, a benefit to using an attorney is that trial lawyers are more likely to go after you if they see you have a DYI LLC: they assume you may not have done a good job running your LLC as a distinct entity and maintaining good records.

It wasn't until we started having trouble that Clayton and co. started making that distinction and trying to distance themselves from OP.As for your final point, I agree wholeheartedly.

If the market flips to a buyer's market, updates will help you to compete.There's an important distinction between upgrading a functional kitchen, bath, roof, etc and repairing one that is broken.Buyers will want important repairs made. 

(Yes, there are a few exceptions, like being a developer's employee)Wholesalers claim that they're not selling a property, but only a contract.To me, that seems like a distinction without a difference, but whether it's illegal or not is something that would ultimately be up to a court of law.

There is a distinction between wholesaling and assigning a sales contract. 

He made no distinction.