He does bring up some good points and it is definitely something that I will keep in mind when starting my business.Thanks!

Some tenants can be pretty rough on the property, and if you don’t pass annual inspection, it can be costly to bring the property back up to the Housing Authority standards.3.

Would I, as the wholesaler, need to bring a contractor with me to estimate the repair costs? 

If they need to pick up the key tell them to bring the signed lease with them.

I suspect this is more for passive cap gain type stuff.. not ordinary income for those in the industry.. and or might work for the private individual who does this totally passive IE a broker brings them a note..

You will have a higher interest rate, but if you are able to cash out enough equity to purchase another investment property, than the higher interest may very well be worth the income that you are bringing in on an additional property. 

and build an accessory dwelling unit (ADU) on  Prop 2 which would generate about $2400/month gross rental income, bringing that property's income to $6,000/month.

I know there are certain things that I need to bring with me to my firat meeting with a lawyer to set up an LLC.

I have other plans but "Plan A" brings me rightly $1k in cash flow.

I'm sure I'll get plenty of people telling me I'm doing it all wrong to begin with but this has allowed me to bring in the money to correct a lot of my past mistakes so just looking for advice on this please and thank you!!!