Is it the interpretation of the law as brokering a deal ( which I agree should only be done by a legal and licensed entity and understandably varies by location), is it the approach that wholesalers may take interpreted as predatory or is it something else?  

Pre-sign a lease so your friend can just gather the new tenant's information and signature on the lease (no negotiating or interpreting the lease!) 

I explained that I can fill in blanks of a form for a client, but can't practice law by interpreting his contracts with seller.  

@Michael Anspach, if he does that there's some related party issues as well as the federal interpretation that he is selling to himself since really it is their joint tax return that is the owner for federal purposes. 

@Ezell JamisonBelow is the IRS interpretation of what you can deduct"To be deductible, a business expense must be both ordinary and necessary.

Interpret as you may, but that is how I have always viewed it.

The IRS will interpret that as you in essence taking that much profit out. 

@Basit Siddiqi ,  let me know what you think.I know that is the norm, but I wanted to tell @John Vietmeyer that not all the professional think or interpret the guidance the same way. 

From what I hear, not all post offices interpret the requirements in the same way.

If I am interpreting your numbers correctly Year 1 Net Operating Income is 5,000.