To clarify, my intention with Property 1 wasn’t to do a cash-out refinance but rather to see if I could lower the monthly payment to ease the negative cash flow.

Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy.

If wholesaling is legal in WI without a license why is it illegal to have a property under contract without the intention of actually buying the property yourself?

I have uncovered more than a few 506(b) operators with 30+ yr track records, that for all intents and purposes, seem like someone I want to invest with, and yet their minimums are $250k+, sometimes $1mm+.

If my comments have come across as insulting, I apologize -- not my intent.

I live in Colorado where I've noticed programs that are income restricted while they have great and important intentions - it's so limiting because the folks who both have a high enough income to qualify for the mortgage yet also low enough to make income qualifications are such a small small % of the population it makes it almost impossible to meet both criteria at once. 

In any case, screw the agent seems to be the intent.  

As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to purchaser(That’s the exact definition of an Executory Contract that he says to switch to) Banks aren’t stupid. 

It didn't cost you anything and we all have the best of intentions.

One I did have direct contact and several phone calls with the owner of the program but he was intent on steering me to create a syndication which was not the stated goals of the program or what I had stated was my intention when I was pre-screened for the program.