You’re going to deduct your tax prep, your internet, your cellphone, your computer, your tablet, your mileage if you’re involved in the properties, your home office, etc etc.

. - You will be at risk of breaking the law, as many states are creating laws that effectively ban wholesaling, and while wholesaling gurus claim that this is not the case, they are either lying or deluded.

RE is a lot more active and involved, even if you hire a PM and a GC which BTW eats up your returns.

So there is increased risk. 

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.

Lastly, they’re going to want a higher interest rate than they can get from the bank for taking the risk.

Diversifying your portfolio could reduce risk and improve overall returns.Higher Cash Flow Potential: If you redeploy the equity into markets with higher cash-on-cash returns, you could significantly increase your monthly cash flow.

What methods do other private money lenders use to pass along servicing fees to the investors involved?

There are more complicated strategies to maximize larger listings that involve having like multiple listings for same property and do individual room rentals when it is slower and then for larger length stays, larger groups, and more desirable dates you'd book the whole space, but I think its easier to just do two separate. 

I normally have one piece of advice for people just getting started, do not take on too much risk.