So you and the bank will be sharing risk - you your down payment and the bank the principle of the loan. 

Returns can be very good here in Wisconsin, but the same principles still apply.

My exit strategy if I can not sell, is to put the property up for a 1-2 year lease option at around $1060/ month with the first & last month's rent, and security deposit to go toward the principle.

You don't start to make a dent in the principle until around the 20th year.

So your return is only the principle down payments which you will only realize when you sell the property.- DSCR will be an issue.

The payout the wholesaler gets takes away from my ability to fully refinance all the private capital principle. 

Since they are 20 year am notes (which can still provide good cash flow in houston) by the time they expire (if I still have them) a giant chunk of principle will have been paid down.

Just use sound risk management principles to keep that from getting away from you.

This is a highly simplified breakdown of everything, but the principles are the same whether it's 5 units or 200 units, but the more units you can get at once the better in my opinion, which is why I would suggest getting a property like the one I mention above.  

If one is worth 4.4 M a day $30 million dollars is just a week of income.Before this principle home purchase, they were just renters.Source: SF Gate May 24, 2016 (4 homes in PA are to be replaced by smaller ones)