I've been told by some that if you buy something that's already performing at the maximum occupancy, you'll be paying top dollar and the only direction that your property value can really go is down if you mess up and end up losing tenants, since you don't have room to add value by increasing occupancy.

Once you get over that hurdle and get the properties performing better, you can learn the ropes, take over if you want to, and really fix the problem.

What if the property performs worse than when he owned it??

(D)That the Tenant/Buyer is hereby notified to obtain renter's insurance to cover loss on his/her personal belongings located in the "premises" or on the grounds where"premises" is situated.6)COVENANTS OF LANDLORD/SELLER: The landlord/seller hereby covenants and agrees as follows:(A)That the Tenant/Buyer shall peaceably and quietly hold, occupy, use and enjoy the property, without any let, hindrance or molestation by Landlord/Seller or any person associated therewith.7)BREACH BY TENANT/BUYER: If the buyer shall fail to keep and perform any of the covenants, agreements, or provisions of this Lease/Option, or if the Tenant/Buyer shall ever abandon or vacate the property, it shall be lawful for the Landlord/Seller to enter into saidproperty and again have, repossess, and enjoy the same as if the Lease/Option had not been made, and thereupon this Lease/Option and everything herein contained on the part of the Landlord/Seller, to be done and performed shall cease, determine and be utterly void, except as set forth in paragraph (8), below.

Then the investor expects that investment to perform that way in year 1.

Ethics aside, what difference does it make to a seller whether they receive $0 or $1,000 if the wholesaler is unable to perform?

For example if you need to pay contractors for rehab work performed you will have to send a request to the custodian, they will have to process your request, mail out the check, it can take days/weeks.

We own large apartment deals in KC, Lenexa and Lawrence and have always found the KC metro to be a steady performer.

I know people perform these transaction sans Realtors, but I have heard a ton of different opinions on the subject. 

Personally, my investors clients may start with working with several other agents, but over time - the other agents who don't perform weed themselves out and we're the last ones standing.Also, most of our investors don't require us to do detailed financials to see if the deal works.