I joined because I was doing fairly well as an investor, am primarily interested in buy and hold deals, and was frustrated at the general poor quality of agents in my area for my price range.

Additionally, older properties may have used poor or unsafe construction materials (like asbestos), which you may have to replace.Beds/Baths: Different areas will have different prevailing bedroom and bathroom configurations.

Never ever assume anything when dealing with government, the process from beginning to end could take months but may take years to accomplish, at this point you do not sound like you have completed enough due diligence to proceed.Night mares grow from poorly planed dreams.

Gutters were only recently added and my thought is poor drainage was the problem.

I had high interest, low rents, and a poor housing market to resell. 

The owner has agree to fix the problem since it is a health hazard and not something we can buy in this condition ( I don't even think a bank would lend on this)?

If you manage them poorly then expenses can quickly exceed expectations.  

", are these permitted sites (i.e. did the health dept or other governning body indicate the additional units are possible with the current zoning) and if so, what is the utility connection situation for those additional 6?

If the wholesaler has a valid, signed purchase agreement they could record a memorandum of interest (or whatever the equivalent is in OK) and block the seller from selling to anyone until the wholesaler discharges their memo.If the wholesaler is well connected and has a good reputation you may get a poor reputation if you try to circumvent their agreement, especially on your first deal.

I think you treated her poorly.