I suggest you go back and re-read my original post. 

Good luck  I cant see why anyone would want to try to wholesale in these markets one its illegal without a RE license in CA just read the regs.. second you do all this work and nothing closes because you cant get deals good enough..

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

Read as much material as possible and go to some local RE meet ups.

@Mike Figueroa why did you start RE investing to being with?

Most RE agents are clueless to this fact. 

Probably the most approachable way to get into RE investing (especially if you're younger), but just my opinion :)Things definitely went wrong, but if that's not expected than it's definitely not the right strategy for someone.  

its funny how this changes with time and the market on BP  if you asked this question 5 to 7 years ago you get drowned out with the cash flow is the ONLY thing and appreciation is for gamblers my self I have always been about making appreciation games in RE.. by either value add building a new product or buying foreclosure and flipping or lending money and getting instant 12% plus returns . 

A really nice home with some extra touches (a little granite, better flooring, nicer paint job, nicer cabinets, etc.) compared to the area will make potential tenants fall in love with the place.  2) Tenants that bring or can swing their own appliances are more financially stable (or just stable in general, ha!)

Tenant was acquired with property upon closing(they have lived in their unit for 2+ years with on time payments). Their previous lease includes a portion of storage in the basement with laundry access(also in basement...