Finding neutral third parties to talk to can sometimes lead to a more objective opinion.

Hello BP,

This post is geared toward local agents in the Dallas, TX market. I'm looking to build long term relationships with a couple of agents, that specialize in foreclosure and pre-foreclosure properties.

Would ...

I’ll try to break it down as clearly as I can with as much objectivity as possible.

When your cash cost increases, but your cash return doesn't, or the cash return is reduced, then you lose.The object in REI isn't to own the assets. 

@Patrick Sears, even if there is such insurance product, it will be prohibitely expensive relative to benefits.Insurance policies have vandalism coverage/clauses, but I think that applies to vacant properties.One thing that you want is to require tenants get their own insurance (in case they burn down the kitchen) and ask them to add you to it - but you have to be careful, there is a difference between additional interest (which notifies you only of policy continuance) and additional insured (which might make it difficult to collect as in the case of burned kitchen it will be like suing yourself to get the money) - check with an insurance specialist.

Maybe in your market things are different but know what you want to do and make sure they don't object to that strategy.Last, I would ask them to tell you about some of the deals they put together for other investor clients. 

The objective is to understand the processes.

Shiny object syndrome is something that has always plagued me. 

@Pierce Barksdale That's not bad, but I worry that there are too many things about your specified next step that you don't have any direct control over.I would instead recommend you set as a goal to review a certain number of actual wholesale deals, with the objective being to quickly and accurately determine which deals make financial sense and which do not.You can find deals by getting yourself added to the buyers lists of active wholesalers in your area.

Options trading for example is actually similar to what you're doing in the way that the objective is to buy the stock for less than it's current market value, and you can buy and sell contracts, but it can be much more profitable much quicker if executed well.