.,  There's a lot of folks feeling the same tension between appreciation and cash flow with their CA properties that you are. 

One has a somewhat ugly house right across the street..the other has nicer neighboring houses but high voltage - high tension power lines in an easement behind the back yard.  

Additionally, if you create a process where both of you have to AGREE on every little decision the renovation process will take forever and increase tension exponentially. 

Their choice, no drama or unnecessary tension created.

I'm searching CO law, but want to stay amicable and not have tension in the relationship as there is a lot of good will currently. 

There's obviously a lot of tension when it comes to this topic but no one has suggested a way to do wholesaling the "right" way.I see people saying that all you have to do is become an agent.

According to the NAR the markets with the most pend up demand, i.e. waiting for interest rates to decrease so they can uncoil like a tensioned spring are:…Austin-Round Rock-Georgetown, TXDallas-Fort Worth-Arlington, TXDayton-Kettering, OHDurham-Chapel Hill, NCHarrisburg-Carlisle, PAHouston-The Woodlands-Sugar Land, TXNashville-Davidson–Murfreesboro–Franklin, TNPhiladelphia-Camden-Wilmington, PA-NJ-DE-MDPortland-South Portland, MEWashington-Arlington-Alexandria, DC-VA-MD-WVWhy?

These are family and friends and you don't want there to be tension with this group of people.  

Every time we do this, tensions lower, everyone gets happy, and transactions close.

Cash flow based on buying a distressed house and rehabbing it are certainly possible if you find the right deal, but you have to be really careful that you know the specific area well to know if it is a good investment.I even know really "hot" areas that still have high crime (or perhaps have even higher crime than they used to because they are hot and gentrifying, which causes tension).Durham just passed legislation called Expanding Housing Choices which makes ADUs and duplex conversions legal throughout the city.