And its very common these days if your putting minimum down which it sounds like you did to have negative cash flow the first few years..

As part of the trial payment plan the borrower was able to put down $3,000 towards arrearages and agreed to an increased monthly payments.Borrower has made 6 months of consistent payments and we modified the loan to have the past due rolled into the unpaid principal balance.

Simply put, you want 200k for lowballing the seller and finding a buyer but you think a flipper spending 2.1M total and taking on over a 6 month project only wants double?

Do not put anything under contract before you know the process from start to finish. 

You should run this idea past an attorney familiar with land trusts, but you can put the ownership of the property into a land trust in which all three of you are beneficiaries, with each having the same ownership interest as they have now.

I'm new into getting into wholesaling, is a P&S a typical form/ is that different from a contract you would put in with the seller that you would then do an assignment to buyer for, or is that done in addition to a contract? 

I am hoping to buy my first property this year and I am putting myself out there to learn, network, and possibly get some mentorship.

Since it's my first rental, I want to start with small, planning to put 20% down, <=$60k, thereby targeting something within $300k. 

If the lender doesn't consider the rehab substantial enough, there are some lenders that will do a cash out refi for what you bought the property for plus the money you put in and have receipts for supplies and labor for the rehab with no waiting period.

I think if you want to put in the sweat equity to do direct mailing, focus most of your energy in researching a specific property owner and specifically target a narrow property owners with specific marketing material probably better than spending money on large number of postcards.