They waived the appraisal contingency, so there is a good chance I'll have to fork over more cash out of pocket than I planned on the make up the difference between the price and what I get loaned.This is a hot area of town, and aside from these issues it is pretty much everything I was looking for in terms of size, location, and quality.

If this is the case, no I do not foresee any issues so long as you don't discriminate fair housing.

This accomplishes the same thing but relieves you of the related party issues.  

You are going to be surprised at the accumulation of these figures and that surprise could be catastrophic to find out when you can't make a mortgage payment because you have a vacancy, have to replace the HVAC or you have an expensive tenant turn due to damage.  

If you guys continue down that path, get everything in writing before you start, so that there isn't any "I thought we were going to do it this way..." issues that come up later.

This led me to looking at bank owned properties for around 10,000 to 15,000 however every single one (even though fixed up nicely each would only be worth 35,000-40,000) had something seriously wrong with it from mold infestation to a giant hole in the ceiling to literally being condemned due to foundation issues.

I can't see that doing anything except causing issues.

Within this community I firmly believe that whatever the issue someone here has experienced it and will be willing to provide helpful information.

No real benefit unless you're experiencing issues that may be related.

Is that an issue that could occur with a wholesalers title company?