I want to make sure this deal is mutually beneficial and I want to sound like a professional (although I'm a newbie) so I will continue to search the BP forums for tips and advice.

Paul,...If you're going to wholesale like a professional, only pursue deals that are worth Cash Buyers' time (target for 60% ARV if you're not confident about estimating repairs)Some wholesalers aim to lock up as many houses as possible and then walk away when their 2 cash buyers won't buy [bad] deals.

We would not argue with an attorney or some other professionals if they put it in writing they were willing to risk something in the grey area.

If your AGI is between 100 to 150, the 25k is phased out and get partial deduction until you reach 150k.If your AGI is more than 150k, then those losses will be suspended (unless you qualify as RE professional) until when you sell the house and will offset your passive gain when you dispose.

Be sure and get a professional inspection, that may cost 1000 dollars but well worth it.

@Frank Leone I'm looking to buy multifamily properties in B or C+ neighborhoods that need rehab or have another value add feature available.

@Joseph Lucas JrMy comment below is a question, not a professional advice, because I'm not an attorney and am not qualified in legal matters. 

I've been doing home repairs my whole life, but know when to call in the professionals and am not ashamed to do so. 

Professional caretakers milking benefits have a long history of lying about the severity of conditions to help people like this stay in the home and continue making a living off them.If you really think this woman is insane, no one is being served by keeping her there except whoever's pretending to take care of her.

And if one isn't careful, they can end up in some legal issues and money issues if they don't have a professional holding their hand through the transaction.