I think wholesaling started out as someone exploiting a "blind hole" in the existing real estate process....eventually, enough people felt they got scammed and made some noise.The handful number of deals I listed from a wholesaler were enough to convince me that I don't want to list a property brought by a wholesaler...they don't yet own the property, and they try to make money off the ignorance of the "owner of record". 

@Derek Caffe We are looking forward to closing this deal and future deals together, Derek.

Please Please Please send me all those off market deals that I can buy like this and also BRRRR.

There are debtor rights attorneys out there, but they typically deal in the owner occupied space, if these are in LLC's then there are still attorneys but they are probably not going to get very far in any type of settlement because there are probably personal guarantees in place or the lender will just take the property. 

No one has more "skin in the game" than a PMC as they have to deal with the property every day until an owner sells or fires them.Also recommend finding your own Inspector and not one referred by an agent.

We never took out the equity from the property; however, if I were to do it again, I would likely have done a cash-out refinance or a HELOC so you can pull out the equity and roll it into the next deal.

When factoring in the rate and term, almost every single deal I look at is a looser due to debt service (unless the LTV is something like 50%).   

Also start looking for deals to see if selling would beat what you are earning now, if it does not then hold till something good pops up. 

The major factors like the roof, furnace, plumbing, electrical upgrades, and foundation repairs are all examples of costly expenses you'll want to inspect before closing the deal.

You can still get a deal.