This would increase operating expenses and give me a different cap rate then what the owner is advertising 

There are many restrictions on what you can offer, who can invest with you, as well as how or even if you can advertise.

Price reductions are the best advertising.

I let them know that if they don't let me know by the date given, the rent goes up to XX- which is the rent I would be advertising for a new tenant and generally $10-$25 higher than the price I gave them if they were to renew.  

You will have to pay for everything - website, customer contact software, advertising, signs, training, admin help, etc.Most people don't want to get their brokers license and go out on their own because they don't want their butt hanging in the wind.  

Wholesaling can be a good foot in the door, but it takes work and it will take advertising.

Because you are starting with limited capital I suggest that you use your time and energy to find these sellers, instead of spending money on direct mail or other costly advertising campaigns.

They also advertise extensively on Craigslist in the real estate section.Good luck!

I gave the heir $1000 up front, and in return, he assigned his (future) beneficial interest to me; I become the PR and set up a restricted account to receive payment as soon as the property sells, which will still be within the 4-month advertising period. 

If two duplexes and SFH are being sold in one sale, advertised in the listing as 5 units, is that commercial, or is it still residential because it's 3 separate houses?