Im guessing that it would be nearly impossible to get permits for something like this, and maybe thats why iv never heard of it before.

Knowing the party your buyer is wholesaling to is irrelevant.The common law favors the freedom of assignment, so an assignment will generally be permitted unless there is an express prohibition against assignment in the contract.

The problem I see with this article is that it bases the "hottest markets" on new permits for new construction.

Usually, that's a city inspector who's inspecting for a specific permit.

i gc my rehabs..i pull the building permits and sub everything out..i manage the day to day, the scheduling of contractors, the ordering of materials...you think some sub cares if they get you a good deal on materials?

Again, an FHA loan allows for the Seller of the duplex to contibute up to 6.00% towards your closing costs/prepaid expenses, so you can take that into consideration with the price your willing to pay (ie. higher price & less out of pocket for you).If you were in TX I could help, but if not, talk to a local mortgage banker/broker and they can get you set up.One more item, if your current residence is financed by FHA then you can't do this as your only allowed to have one FHA loan at a time with very few permitted exceptions, of which your situation does not fall under.

I am in SoCal physically but open to lending in most States/cities.Since this is a hard money loan, can I do it on an individual to individual basis or do I need some type of license/permit?

I mean more brs will help with cash flow but what happens if there is a fire that starts in the additional unit with no permit?

Best way is to go to county ( or city) planning department where they get building permit.

Andrew,It is called a 1031 exchange because Section 1031 of the Internal Revenue Code permits you to defer the capital gains tax that would ordinarily be due on the sale of investment or business use property on your federal income tax return when that property is the relinquished property in an exchange.