As soon as they start making threats or withholding rent- take the steps to fix the problems, if they exist, and put them out. 

Most properties in decent shape in this market disappear really fast and don't need a wholesaler to find them.

seemed pretty legit so i signed them and sent them back. a day later i get a warning from them that they needed these papers signed and the proof of funds letter sent in or the were gonna cancel the deal. i re-sent them, and told them that my financer was out of the country at the moment and due back in 2 days and i asked that they hold off until then. they sent me back a letter that said that they got only 1/2 of the paperwork i sent back to them and they demanded the other half or they were gonna cancel the deal. well, i had my lawyer send them back again. this time i got a letter that said they got only 1/2 of them and this document was the wrong one anyway, and if i did not send them the right one, they were gonna cancel the deal. i sent them a letter stating that they need to send me the right ones and from now on, they can deal with my lawyer. after several attempts to get them to understand that they need to converse with my lawyer, they started talking to him. they made several threats about cancelling the deal. we got all the necessary paperwork into them as requested, and they still accused us of not having what they needed and once again threatened to cancel the deal. i finally ad my lawyer talk with their lawyer out of new york city and we got everything into them as requested including the proof of funds letter and the 1/2 documents that they said they got. we had to send them certified mail just to make sure that they got them. after they got all of the papers they wanted, the deposit check and everything, they cancelled the sale and told us it was because we failed to get them everything they needed within the required 2 days after the sale. they later resold the property on hubzu at a $4000 loss in compared to what i offered them. even my lawyer said to never deal with them again because they were the biggest ******** he has ever dealt with. he actually told me that if i buy another house from them, that i need to find a different lawyer to work with them. 

There's high demand virtually year-round, no severe weather threats, and the local economy is so entwined with vacation rentals that there's plenty of service people to help you run your property.  

I've had lightbulbs, custom cut blinds, and a hanging microwave disappear though, and on each of those cases I had a security deposit to deduct from.

Even in a hot market people will disappear on you.

The rules don't take effect for 6 months, but the message is clear.Cities want their hotel tax revenue.Cities don't want those big bad real estate investors to make too much money.Cities don't want rental inventory disappearing from the market.Don't make a highly leveraged 25 year financial commitment on the assumption that current market conditions will remain the same.I stay away from things that the general public get into and it seems everyone wants to rent out an extra room or home.

Just a threat of calling the Board in Ca would back him off the lien.  

The house was turnkey, the market was skyrocketing and I had a chunk of money in the bank that I didn't want to see disappear with the onset of the new Biden regime stepping into power.

There are some buildings with $100,000+ - does that debt just disappear?