Also, management company's charge 8-10%, equivalent to $300 a month.

However, your analogy,  that I can not loan out the rents I collect  "any more than my property manager might lend themselves my collected rent that is in their care." is not equivalent with my situation. 

In this instance, the homeowner is the little guy and the wholesaler is the equivalent to the landlord.

*Also, not sure how long ago they switched, but now they're using a rent equivalent metric. 

So the concept is similar to the arbitrage model, but less risk is assumed by the owner as the owner is still in full control, there is no subletting, its pretty much the STR equivalent of an LTR PM?  

For every $500 cash-flow that you generate, it's equivalent to $100k in equity.  

In the RE world the equivalent would be if you went to banks and auctions and bought a lot of foreclosed properties and then resold them quickly at small profits.

Stick to buying one overpriced property,  cant argue with that.TK real estate is equivalent to buying whole life insurance policies.   

  $40x would take much longer or much greater scale to allow the investor to amass an equivalent amount of reserves/dry powder for the next purchase.The time value of money would suggest that investors prioritize obtaining reasonable cash flow up front to be reemployed and creating more value over time (i.e. having your money make you more money).  

REI was on the hook to pay me the rent-equivalent; I was on the hook to cover utilities.