It helps prevent being labeled as a "dealer".This is just what I have been told, so you definitely want to speak with an attorney.There is also a BP podcast that speaks about this.  

For things such as tile, roofing, cabinets, you have to use other dealers.

As humans we are hardwired to remove ourselves from things that are unfamiliar and scary. 

Ultimately, value of a given property is determined by a ready, willing, and able HUMAN.  

Here might be reasons for low rents and cap rates:Property is leased to a family member, might be a cousin or family friend.It was purchased in a lease back agreement as part of the deal.An owner just turned landlord as a means to get out from under a mortgage and moved on.The property can be leased to an investor on a master longer term lease, lower rate for lower risk of vacancies.The lease could be showing, the option on the property may not be obvious.Properties may be leased under non-profit programs, again a source of guaranteed rents for lower returns.Owners may have plans to move back to a property, lower rents to tenants who may be more trusted as consideration for caring for the property.I know a car dealer who has rentals, some of his employees rent from him at break even amounts.Transitional housing arrangements, I buy your house, might be taking your house, I'll allow you to move into this one at a good deal in order to get into the other property being acquired, giving that owner more time to relocate.Properties can be providing other benefits to an owner, as I mentioned above, other than seeking cash flow, there are many instances where money isn't everything. :)

I started in RE getting information from real estate agents, a builder, a couple attorneys and coffee shop talk with wheeler dealers.

It just so happens my company was running a contest (insurance comapnies and car dealers always run contests.

Whether is is contact management, lead management, human resource, receivables etc etc..

Congrats on taking action and trying to flip some contracts... most humans desire great things in life but lack the ability to believe in themselves and take the need action to achieve this success.

Balloon notes inside 5 years are panned by note dealers due to the statistically low likelihood of the borrower being able to refinance out of the note that quickly.