I will not attack his overall character as I don’t know him.

This MEDIAN rent is defined by HUD to be FAIR MARKET RENT, FMR. 

I'd estimate that there are less than 1,000 legitimate, or "professional" wholesalers, in the United States of America, as defined by individuals who make $100K flipping contracts, and collecting assignment fees, in any form, and who have made that amount of income more than 3 years in a row.

Obviously this person would naturally have more %Regardless of what structure you guys decide on make sure it is clearly defined!

A scam is defined as a dishonest scheme; a fraud.

The bullet in the response that is standing out to me is:"(7) The accessory dwelling shall not be a short-term residential rental, as defined by City Code section 3-2-152(a)(2), for a period exceeding 120 days per calendar year."

For instance, the SEC doesn't define income or net worth for non-accredited like they do for accredited. 

Simplify the structure as much as possible, have clear roles and responsibilities that are not overlapping (meaning only one person is allowed to make certain decisions) and a clearly defined exit plan.

You also will want to stick to on market properties at first because the purchase process and evaluation process (namely title and inspections) will be more defined.

The participation must be regular, continuous, and substantial as defined by the IRS.