They can no longer make the spreads like they use while providing a decent yield to their end buyer.You already mentioned disadvantages related to the vertical model but with the horizontal TKP model, there are several distinct disadvantages: 1.Too much control under one roof. 2. 

The only distinctive difference is that instead of a consumer as the seller, you have a bank (investor) as the seller.

@Brian LauchnerYes property in an IRA can be manged by the IRA participant provided he or sh does not receive compensation for doing so.Managing the property is not a sweat equity function which is the key distinction.

Similarly, making unspoken distinctions by promoting a school in one district while keeping silent about the quality of another school can have the same effect.

So I'd say both houses tie on those metrics.Both neighborhoods are nice, so that would appear to be another tie, but it looks like you may have a slight preference towards the neighborhood the second house is in- so let's say the second house gets a point for that.But here's the main distinction, and why I'd probably go for the second house, if all else is equal(and let's be honest with ourselves, when is all else ever equal?) 

That is a GREAT distinction and should be read by everyone in this thread.  

Just the same, wholesaling is not illegal until the operator performs in an illegal manner.Another distinction that really needs to be made here is this, there are wholesalers out there, there are those "wanting" to be wholesaler, and then there are the dishonest scumbuckets.

(That's 6 full time people)We also have a full warehouse to help with material logistics, an off-site accountant to run our books, and heavy investment in technology to make all of the above go faster (Such as Buildertrend and Exaktime)... and there are definitely times when we feel distinctly understaffed.Personally, running all of that myself, I could not imagine myself handling more than 1 or 2 jobs without absolutely losing my mind. 

Such would mean that regardless of whether or not there was an LLC involved, from a liability perspective (if such were to ever arise), there would be no distinction between you as an individual and the business entity.

I set up distinctive ring on the Obihai box to make the incoming lines sound different.