They use the appraised value.It's a win-win!

I was thinking maybe I could find the spot he wants, purchase it and then boom... instant cashflow again from a tenant.However, the issue is cashflow...

Honesty always wins!

There is a significant amount of capital needed to "lock up" a deal and in today's market you'll probably need to go hard day one on a portion of your earnest money to "win" a marketed deal.

You have a house now and one major repair will dissolve that instantly.  2) Once $5,000 is achieved, I would then take all of the money left over each month and pay off your credit card. 

So my question is, is it possible to let’s say, have a realtor generate leads for me, I wholesale it to another investor, keeping the same realtor involved and everybody wins?

Success in this business always starts with a winning team.

Whether this year's market or next, trust your numbers - there are deals no matter what, but it might take time to find something that works for you.My first multi (JP three-decker) was also a house hack with FHA lending, and it took 18 months to find and win the right combination of condition (FHA has stricter rules on condition, no matter your trade experience), existing tenants, area rents, and location we wanted to live; be patient, be thorough, start looking soon, and trust your numbers.

If the property is then forced into a foreclosure auction, the first mortgage would be paid off, then any senior liens get paid, and then the lien that was assigned to you would be paid (in full) -if there is enough equity in the property, or you could win the property at auction for just what remains on the mortgage and senior liens.  

They may not win those incredible homes that are priced correctly - but they are winning TONS of the other homes out there.