My guess is that the only thing keeping the potential investor from doing this is the fear that the house will sell to a different investor before the wholesale agent's contract with the seller expires.  

My fear is that the CAP rate value 80%LTV refinance won't be enough to cover the balloon.

He cancelled the inspection out of fear for his personal safety and his equipment.  

Formidable to fearful.  

Don't surrender to the fear. 

My fear would be that something major gets past me (something I wasn't thinking of or planning for because I'm new to MF, or gets by the inspector) and I'm costing my investors $$$.Thanks

Nothing to fear in a well run community with adequate reserve assets @Nam Nguyen.

M2M tenants never fear having to break their lease and are extremely forth coming as a result.

Finally, being in a small market in Wyoming makes it about 10x harder to do real estate investing because there is not the support of other local investors to show you the rope and share wisdom and knowledge and the number of real deals locally is few and far between, simply from a numbers perspective.I detect an underlying thread of fear that is driving your plan so you aren't personally liable.

If you would like to read more I’ve included a link to CTMirror. https://ctmirror.org/2017/09/21/gop-dems-both-lack-solution-to-cts-cycle-of-budget-deficits/ We have such a ballooning pension problem that I fear the situation may escalate and I could be holding rental property that has increasing vacancy rates due to decreased demand, increasing property taxes to pay for CT’s budget problems and very little or negative appreciation.