My goal has been to get into rental properties, so I was thinking instead of selling it, maybe I should just rent it out and use the equity in the house to buy a smaller one and eventually rent it out as well and repeat. 

My guess is that eventually Federal Law will go towards the path of legalization.

The flipper eventually bought the place for $149k and is now on a razor thin margin. 

Thats where it would make sense to go after landlords.What it will eventually lead to, if these states continue to stick their beak in, is that landlords and tenants will start doing verbal agreements where the landlord simply charges more in rent to essentially collect the option fee and then a verbal agreement between the two parties as to what the house will sell for. 

He eventually grew and did some radio interviews which he recorded and then distributed which allowed him to attract more potential investors.

We are very interested in pursuing the wholesaling route to get ourselves started, and eventually be able to use those funds to break into real estate investing.

However, doesn't these banks eventually see Income vs Debt after doing this over and over again.

After negotiation,I made the final offer on this property which eventually got accepted and the transaction is currently in its closing phase.

Eventually after you do a few you won't have to rely on your spreadsheets as much because you'll know the numbers off the top of your head.  

We will eventually (3-4 years) tear down this property and build a multifamily complex on the land.