They want to start out wholesaling in their spare time to build capital to buy long term rentals. 

I could buy a house for $450,000 with a mortgage of $3,000 plus taxes, insurance, and maintenance.

The property taxes are current and insurance is current.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

This is because the Schedule E is obtained independently, and few people would inflate their rental income in that form (and pay more taxes than they should).  

Purchase price: $1,650,000 Cash invested: $139,000 Alexandria, VA commercial office building. 3 office tenants, fully leased upon purchase.

While older buildings can come with maintenance challenges, they also offer character and potential for value-add through renovations.

This is the same as they would do for other items the seller already paid for like property taxes. 

@Frank Jakubiec conduct some research and build relationships with local small banks who offer construction financing.

Even with that being said, your holding cost is still positive on the second one. 27k of appreciation at 3% annualized. would cost you 4800 to get that not including loan paydown or the tax benefits of holding it at a loss each month.