If there were a total loss on Day 1 of the property, I would essentially be cut out a check for 171,000 (minus my deductible), even if I did not plan to rebuild, because there would be no depreciation.

I think building a buyers list is the most essential and first step in the wholesale process.

Keep an eye out for your personal safety and for your property.

Contingencies do weaken offers, but their purpose is to provide a safety net for what you might discover in due diligence.

Wear pants, long sleeve shirt, hat, safety glasses and respirator - it's messy!  

I plan to rehab both and initially planned to do a cash-out refinance when complete.There were some difficulties with financing this deal, mainly because I already have five loans for other houses, so I raised funds with essentially a HELOC and a crowdfunded personal loan to purchase the house for cash and cover the rehab.

We don't have any official contract between us but but we have been together for 11 years and are essentially married.

Stay disciplined.For the final little tidbit, if you do this successfully, you will essentially be doing EXACTLY what you were prepared to pay the warranty/insurance company to do for you, and you just put the profit they would have made from you into your own pocket instead of into theirs.  

Essentially, have you tried everything to make the properties perform better?

I was thinking that I would bring in a certain amount of money for repairs to bring the home to rental ready condition and to have cash on hand for a safety net.