If the reason for doing this part of your 3 prong strategy was for him to be able to get a loan then a sale of interest after a loan has been given could trigger a due on sale.  

It has been my experience that those offering 100% either prevent the loan from closing and collect on non-refundable junk fees or they are taking considerable profits on the back end with unfavorable terms to the borrower.  

So I looked at/ and am wanting to pull the trigger on a deal in the near future/tomorrow.

Joe,You state that it seems most of the posters here seem to have properties in the 50 - 150k range and that there is a difference because you are talking about houses in the 300k range. the answer to that is yes and no, houses in the 50 to 150k range may rent for $800 to $1200/ month ( so a PM commission at 10% would be 80 - $120) where as the 300k property may rent for $1200 - $1800 and the PM would get 120 - $180 / month. so the 300k property would bring in more money to you then the properties that are bought at the 50 - 150k range. so that spread in income should cover the PM'S costs no matter what price range you buy at and still leave a considerable profit after ( more with the $300k+ houses). you also have to deal with different "class" of people at the different price ranges. and as explained in an earlier post sometimes the people with more means can be the biggest pain. but no matter what price range you buy a house and rent it at, there is a lot of work that goes into managing that property, one that i gladly pay my PM for.

Before I pulled the trigger on anything we moved from Columbus, GA to the most expensive city in Oregon (Lake Oswego, $400K gets you 1,000 SF fixer here).

Real estate broker" or "broker" means any person who:(a) for another and for commission, fee, or other valuable consideration or with the intention or expectation of receiving the same directly or indirectly lists, sells, exchanges, buys or rents, manages, or offers or attempts to negotiate a sale, option, exchange, purchase or rental of an interest or estate in real estate, or advertises or holds out as engaged in these activities;(b) for another and for commission, fee, or other valuable consideration or with the intention or expectation of receiving the same directly or indirectly negotiates or offers or attempts to negotiate a loan, secured or to be secured by a mortgage or other encumbrance on real estate, which is not a residential mortgage loan as defined by section 58.02, subdivision 18;I don't have the time to dig any more deeply into another state's laws, but I expect that the legal way to wholesale is to first buy a property and then resell it.

There is a lot of money on the table not only in rental income but also in considerably raising your property value based on cap rates.

You could get upside down pretty easily in that scenario.I get that you actually have to live in the place so that may override your investment considerations.  

If/when the seller becomes motivated to sell at a reasonable price, then you might want to be ready to pull the trigger quickly.If you really want this particular property, I would suggest viewing it and determining what it is worth to you (completely throw out the list price as it should not factor in to coming up with your own value).  

Will this trigger a raise in Property tax?