The real answer is it depends on the intended use of the property, how extensive the renos are, and what your risk tolerance is. 

To build a buyers list, go to the top of the BP Wholesaling forum and read the sticky topics there; one has an extensive set of links to a variety of methods. 

I was just hoping to tap into the collective BP wisdom to help shape my search for a forward investment.

The sole purpose is to identify and acquire 4+ bedroom properties to rent to college students and collect rent per room (research shows that rooms can rent anywhere from $400-$600 depending on size and condition of rooms/home). 

California has become VERY aggressive about collecting taxes.  

Then once we decided to get into real estate more seriously we got the HELOC and used that as downpayment for the next flat.We wanted to use it to get a 3rd one but the bank said no, so I will let my two flats collect some more equity while i gain more experience and I will try the bank later once I have a longer history with them and they trust me more.In the mean time Im now learning about fundraising and moving to Dubai will mean I get to get more leverage there in some time.

Both daughters held title until 2005 and transfered property into the mothers name so she could get a reverse mortgage.The mothers will, which was recognized by the court, gives the property back to the 2 daughters after her death.The problem:The husband, the person still living in the property, is claiming ownership and refusing to let the daughters into the property to collect their mothers person effects.

I also have several more interested in a showing, so I will have paper apps present and collect the app fee immediately at the next showings and see how that goes.

Collect a large downpayment, with rent that covers (or exceeds) your current rent.  

Maybe having high screening standards but a lower security deposit and not collecting last month's rent up front is enough insurance for you.Up your marketing game.