You can either wait for natural appreciation as all real estate appreciates over time (even if only because of inflation) or you can force appreciation by rehabbing. 2.

My research has naturally pushed me into Arizona given location to southern CA (family is there as well), affordability, friendly taxes.

Because your activity right up until renting will act a lot like a developer there will be a natural skepticism on the part of the IRS if ultimately audited. 

I decided against metal due to the sharp nature of it (thanks @Mike Reynolds).

Those are for natural persons.

I think somewhere on the website there is a digital calculator you can use to determine whether or not a particular property is going to really natural any profit or is worth your time?

If natural gas is available, that would be an obvious choice.

Talking to someone over the phone or texting does not convey their true nature.

The key is that your role is purely administrative in nature. 

Since the intent of 'wholesaling' is not to actually take possession, the unilateral nature of an option agreement seems to fit the wholesaling business model and should, presumably, mitigate some of the concerns a wholesaler might have if they are unable to complete the purchase.I am currently researching the use of options as an alternative to assignment and have started a member blog on this topic.