Get an item of value into each of their hands every 3 months (small gift).I am also a proponent of geographical farming.  

If someone now claims they have under those circumstances, I'm sure they are lying or the judge was related to them or the seller had the dumbest attorney alive.So, wholesaling as it is taught by the gurus has 3 areas of concern, all can cause you a greater financial loss than what you might be trying to make.Now, does that mean wholesaling is dead or can't be done legally, without risks managed, in an ethical manner?

We don't have the credit and we don't have a large sum of money available either so I think we're just stuck untill we get one of those key items.

This is also how I would sell him on the deal.Estimated Minimum Closing Costs $5,500.00Estimated Closing Costs Based on Prop Value $5,500.00 Repairs/Construction $10,000Total Loan with Seller Concessions $100,000.00 % Down Payment 20.00%Down Payment $20,000 Remainder of closing costs $15,500.00 (this assumes you are paying for the renovations out of pocket)Total Due at Signing $35,500 Mortgage Rate 4.75%Length of Mortgage in years 30Monthly Mortgage payment $417.32 Taxes $100.00 Sewer and Water $- Trash $- Heat/Utilities $- HOA $30.00 Cap Ex and Ops $150.00 (this is your future roof replacement, hot water tanks and other major items)Insurance $250.00 Mgmt Fee $140.00 Vacancy $113.40 Total Expenses $1,200.72Total Revenue $1,400.00 Cashflow/month $199.28Cash on Cash Return 6.74%

Increase the purchase price by the amount of the repair and then include the repair as an escrowed item to be paid by the seller.Example: Say you're buying a $150K property for $100K cash, with closing costs $5K, and septic work is $5K.

Union Savings acts more like a bank, so those items come into play.

If the tenant should reach for the fire extinguisher I gave them and it failed to operate for any reason I could be held liable for their losses or injuries.

Cap ex ask your accountant, in many cases you may have a choice whether to capitalize or expense a given item.  

Dejected, I was at a loss.

I'd mitigate the worst case by not going over $150K on purchase price.Also, it looks like you have some money, so even in worse the worst case scenario, you could sell and sustain a loss without sinking.In the expected case you will invest about $200K and earn about $20K, a 10% ROI.