I think the current owner is somewhat intimidated by the person renting and won't do anything to rock the boat in fear of losing her. 

Anything that I fear is teaching me courage to overcome. 

It allows the Wholesaler to advertise the property all day long, take out a billboard ad in front of the state real estate commission in Oho or any other state without fear of getting nailed!

When you demonstrate good faith in your dealings by giving them some money right up front, they don't have as many fears and you establish yourself as a professional who cares about their needs right out of the gate. 

Way to not give into the fear and to face forward!!

But what's your advice and have anybody had these butterflies or fears too 

My only fear for that area is nonpayment in perhaps an area that has cheaper houses or people who have good jobs wouldnt want to live there.

My long term strategy is to be a buy and hold investor in multi family or mobile homes (since they are very prevalent in East TN).  

I've searched around a little and couldn't find an answer, so I figured I'd master my fear of looking dumb and just ask.So I'm driving around a neighborhood I like and I see a house with a sign, "For Sale By Owner," and I think it looks interesting.

Talking to people with experience means learning what they're doing as compared to learning what you - and they - should be doing: what they're doing right and what they're doing "wrong".There's an unfortunate and extremely prevalent and powerful bias here against paid education.