But you can attenuate that pattern of behavior in your rentals with good vetting.To further your point Jim this is where I see newbie landlords who have absolutely no clue how most tenants at least those that can only afford 600 to 800 dollar rents live their lives and how they think.landlord wants to charge for any little thing that gets busted by the kids.. tenants have no money  .. so then they start to get upset and look for a new place.. maybe break the lease all together.. 

This and other ethically dubious behavior shouldn’t be surprising though since there is no license to become a wholesaler and most wholesalers learn about it through a guru or YouTube personality who says it’s super easy and you can do it with no money.

With that said, I’ve found that whatever the product or service that human behavior doesn’t change that dramatically.

We could get involved in a philosophical debate about human behavior and ask why there are bad people in every profession, but wholesalers who purchase a property at a price that makes sense for them and one that they can make a profit is neither unethical nor illegal.   

In short, I did not ever "equity strip" a homeowner, I did not ever lie to the seller, misrepresent myself, or any other immoral behavior often promoted by the gurus who teach "wholesaling".

This was a conscious decision based on poor behavior of other members. 

I now find it difficult to trust a company with such questionable behavior moving forward.Seems like many subscription services do this: the customer is automatically billed unless they specifically cancel, usually in a way that’s not very intuitive and can easily be overlooked.   

Does there have to a situation where the landlord does not have insurance, or a serious case of neglect or reckless behavior for properties to be taken? 

I also have a Bachelors in Social Work and soon to pursue a Masters in Management and Leadership - Organizational Behavior.  

Not only would the other 3 tenants cover your house payment, but having the owner on site generally assures less tenant damage and better overall behavior.