Which do you think will be more competitive, buying from wholesalers or your own referrals?

I don't even know how the flippers buying them are making money.  

There are some exceptions, but they are rare, they have access to funds, and they typically built their empire when the timing was right and got lucky.Likewise, it's not often that you can buy a house and sell it for big money six months later.

Buying small dollar non-performing notes and working (hard) to get them to reperform is a good way into the business -- if your friend has the time.

When I am looking to buy properties, I have to walk through personally to not only see the aesthetics but also the systems and layout which are hard to evaluate from pictures.

@Jason Hallett If you're just buying RE outright and not remodeling, adding value, or forcing appreciation you will run out of funds. 

And if you are buying a property with them and will be renting part of the property from them that too is fine. 

Quote from @Tara Davis: Hello, I have been educating myself on mortgage notes, an I am ready to buy.

First time buying rental property with tenants.

Say they buy a new stove.