The expenses you have on paper are just that, paper estimates.

You, the wholesaler, end up being owner of record on paper and in the courthouse records for a few minutes.Number 2 is likely the safest way to practice, since a contract is a security, and if you don't get busted for practicing sales without a license, you might get busted for securities fraud.

FSK paper backed insulation or any metal backerd paper. 

google "paper bag floor".

I had success buying notes from local thrifts and credit unions.. however I walked in got an appointment with the manger or president and then presented my plan.some of htem were way cool I bought the note 2 weeks before the sale.. and I would either get cashed out by a 3p purchase at court house steps or end up with the asset either way I was happy.you can for sure buy notes in low value areas that have plethora of bad paper and dubious value RE.. but if your thinking WEST coast then I agree this horse left the barn long ago.unless your buying 100 million to billion dollar blocks.. however one off I don't see it ... only private lenders would do that..

East of the Monon Trail to Keystone can be edgy/sketchy/questionable, but there is definitely housing stock which looks quite affordable & your pro-forma cash flow will look good on paper.  

If you buy a $100,000 property and depreciate it over 30 years, then on paper you are describing a "loss" of $100,000.  

I was so leary of this I spent 2k on an opinion paper from a top law firm in MS to make sure I was able to do this.. once I realized I was I bought about 2.5 million worth in 24 months.

I probably scratched out 100 deals on paper just to practice and familiarize myself with the numbers, formulas, and equations before I went out and made my first offer.Another important thing to have in place is your funding.

From what I have read you are on the right track, I have heard that using yellow lined paper and a "handwritten" font on your letters as well as handwriting the addresses on the envelopes also helps increase the probability of  a response.