Gives them more than what they purchased for, more than what a potential market offer would be, more cashflow to them per month with no management headache and travel while providing good terms to me.

Completely makes sense to me. 

Don't take this the wrong way but if you say "It's not a scam" that screams one thing to me...

I’m a wholesaler primarily, the property I do have is sfr through partnership with my end buyers.But multi just makes a world of sense to me.

This deal looks to me like you will be losing something like $500 a month.IDK how you're going to get a loan with 5% down if you're not living there.Doing this deal is a gift to your friend. 

To me that says that these LLCs are single-member LLCs that are disregarded for federal tax purposes. 

I am looking into HomeSmart- local office to me (I am in Laguna Niguel), they provide some great support, and excellent commissions.

Again, the way to avoid this problem is by parsing the rent roll and identifying the loss to lease for all units leased within the last month or two (the loss to lease should be near $0 if there are no operational reasons holding rents back).If you have any comments/questions or would like help underwriting your next multifamily deal, please reach out to me.

To me, that means a unit is in a good location, renters find the area desirable, and I am able to manage and maintain the product cost-effectively.

Sounds like a troll to me.