Quickly I realized this wholesaler was basically short shifting me, as I was the one putting the leg work in and finding the deals, not to mention handling the legal transaction. 

A call to inscompanies will give you a ballpark price.Those numbers are easy but rather maintenance, cap ex, and the other real numbers are often more challenging.

Challenges?

Location and the challenge of a difficult renovation How did you find this deal and how did you negotiate it?

Challenges?

You may have troubles listing them on some of the platforms such as Trip Advisor who verify property ownership but if you have a signed lease, I don't think they will challenge it.

The big challenge will be on me though to find a property that she will be happy with. 

@Lee Ripma  as Lee stated affordable housing in the private sector is handled with Tax credits.. there are developers who specialize in this asset class.. 

These are not official lenders of any sort.... just two people I know that have the money to spare and would like to make a little passive income.Couple questions....How do I handle this so that I am completely above board?

Challenges?