:)  If you've got a local housekeeper and handyman you can count on, and the ability to respond to guest requests in a prompt manner, you don't need a PM.  

Cashflow provides security, proof of concept, financial freedom, and the ability to keep your investment in a down turn, but wealth in multifamily is built by forced appriciation, and tax incentives.

But if the renters burn them down, I would have the ability to rebuild what I had, just not the old wood and windows and doors:(My insurer does let me lower the amount, but if I go lower I have to sign that I understand that the property is insured at an amount that would not cover all the costs for a rebuild and I am underinsured by XX%.

He appreciates having the ability to flex to my jobs on rainy days, rather than pounding nails in the rain or taking the day off.

Would I still approve for FHA even if I have done few wholesale deals, or it doesn't matter and it has to be actually buying a property to lose the ability to use FHA?

Another point about Cap Rates, they are also a measure of ability to raise the price of the property for exit. 

I'd love to hear how market conditions in Waco have affected your ability to execute your business plan. 

It is ideal (and will really improve your ability to successfully engage contractors) if you can float the construction draws3.

I am by no stretch of the imagination an expert, and I'm sure there's missing info here (what do your credit scores look like, what's your DTI look like and will it affect your ability to qualify for future financing, do you have additional credit to make use of, etc.) 

If you haven't shown him that you have the ability to deliver the product, why wouldn't he feel uneasy about it?