I've looked briefly into 203k loan but i don't like all the stipulations especially if we want to do some of the work given that they require licensed contractors. 

That stipulation is modern day financial slavery in my opinion.

I noticed that people would say the only stipulation to transactional funding is having a buyer already in place.

Also I think this strategy would be awesome in order to fully reap the tax benefits the owner occupy person would get and could potentially roll into a future deal with the partner (all stipulations contractually spelled out of course).

Joseph, I'm still sort of a newbie who has been doing this on and off for the past 2 years(mostly off) BUT I feel I can offer a few kernels of wisdom..First off, bird dogging is almost a guaranteed waste of time...it's too much hassle for not enough money(take it from me) Secondly, proof of funds has never been required from me when putting a prop under contract..If a buyer did ask for proof of funds, you just tell them you'll submit the info to your hard moneylender to see if he'll approve the deal.You'll want at least 1 or 2 hard money lenders if you ever decide to do a rehab but they're really not necessary for wholesaling..Also, my contract doesn't stipulate giving earnest money nor have I ever been asked for it..If you tell the seller it's an all cash deal(which it should be) then they're fine w/ that....So to sum it up, YES you can do this while being out of work...just have the buyers lined up, pick a solid marketing strategy and wait for the phone to ring..

When you make an offer, put the following in the Special Stipulations section: "Buyer agrees to provide earnest money to listing agent in the form of certified funds within 48 hours of binding agreement."

You'll be asked to justify any rent you ask and provide at least a stipulation that you're charging your "normal" rate.

From what I have read so far, the Certificate of Eligibility may not stipulate the secondary layer of entitlement. 

This binder has stipulations attached and will go towards the down payment at closing, but if it doesn't close the Owner could be granted the money.3B.

It's an interesting market b/c further south houses are 2-3 times that and only rent for an extra 100-200/month.The cost for us is only 1/2 of first month and we have stipulation in lease that they lose first 250, normally that will cover but sounds like i should take that into more consideration.Have not had to do evictions yet (1 property 10 years, and 3 others for around 1 year), do you factor that into your costs as well?