@Krishnan B Menon didn’t you have to show proof of funds when you submitted your offer? 

I believe we’re pretty late in the cycle would lean toward less leverage, but have dry powder so you can take advantage when the opportunity comes.

It is a applicants responsibility to provide the necessary proof not for the landlord to have to search for it.

@Ashish Acharya just had a post about this recently describing a lot of the examples of supporting evidence and proof needed.https://www.biggerpockets.com/forums/51/topics/690615-real-life-example-of-the-real-estate-professional-status?

The next step will be to meet with a mortgage broker in order to see exactly what you guys qualify for and get proof of funds which you’ll need to show an agent to let them know you’re a serious buyer.

Seems like a pretty simple, inexpensive thing to fix.You should require seller to have the mold remediated by a professional and provide proof of completion.

When everything is on a down cycle, then you "can pick up cigarette butts".

don't be afraid of putting one under management as proof of concept. if you like the company, then you can put the rest under management as well. 

proof is in the pudding lol run the cost/benefit analysis and see where you end up. i'm not a contractor, but finding good people that do solid work (i.e., your laborers) and not eff up is near the top of the list. i bet a lot of large(r) flippers have their own crews. 

If you have a proof of concept and there is enough meat on the bone this could work although that would be very generous of you to exchange equity for working capital if they are not bringing anything else to the table.