My reasoning is that I like having a lower required monthly payment in order to maximize my monthly cash-flow.Remember, you can always reduce your principal balance at any time with a HELOC (or an loan for that matter) simply by making a, "principal reduction" payment.

I think holding in your personal name with an umbrella policy may be similar risk wise to holding the property(ies) in an LLC but with perhaps lower overall costs after factoring minimum taxes and fees associated with an LLC.Perhaps an atty could tell you what the process would be for transferring properties into an LLC, but I don't imagine it would be difficult. 

Once you have tenants, it becomes difficult (but not impossible) to call that investment passive.

I'd say its the lack of houses that used to have some significant discounting and that difference in end loan pricing is what is making it difficult to find deals. 

A much better chance to find them off market but still difficult. 

I've done a few for rates of 7-12%, 1 year, usually interest only with monthly payments and the balance due at the end.  

The much more difficult part of being a wholesaler will actually be finding the "deal" in the first place and putting it under contract with enough head room for you to also make some money.  

I am new landlord in New Brunswick, NJ, I rent 3 bedroom townhouse to the section 8 home. the tenants need pay all utilities. the water in the bathroom were bleaking she find out untill the water bill came, the water bill is very highabout $2,300.00 for the 4 and half months. she don't want pay any, I aske her pay $ 400 and I paid the rest. she said he will take care of it but never do. now she live there a year, she only pay $200 for the water. the open balance is $438.00. what should I do. do I need to go to court?

The return on investment you can generate with the remaining balance will be taxable.  

Plus finding someone to manage this can be more difficult because of the low price points.