I explained that his asking prices were simply unrealistic and that in order to purchase them he would need to come down on price. 

You may or may not win this, be gentle but firm with your position when explaining it.The tenant that occupies the basement could be twisted a couple of ways.  

After explaining it to him (as I understood it) he asked me what the difference was between a wholesaler and a Realtor.

I used to explain how much money we needed for rehab on their home but have shied away from that as the owner generally thought I was making up a high cost to make the numbers work in my favor.

My question is can someone explain a step by step legal alternative to wholesaling in Ohio without a RE License, and then with a RE license.

Make sure you don't have any large expenditures that are not easily explained before you get your loan.

I am looking to start buying homes near my apartment complex to expand my portfolio.. here is where I need your help.. my 16 year old son is starting to look at college courses.. we had a talk today about earned income and passive income.. i was explaining to him that even though my cleaning company was successful ( 13 girls cleaning over 100 houses a week) that I had a limit to how much i could earn based on how many hours me and my girls could work.. but with passive income it could be so much more.. he is so smart.. and me and my husband both own our own company's.. but I would much rather he get started now with real estate investing than spend 4 years and $100,000 on school loans to not use his degree in his field ( which I see a lot of my friends kids doing.. they go to school and spend 4 years and $100,000 and end up doing something unrelated to their major)..

To make sure you explain it and communicate it correctly:  The seller "carries the loan", not you. 

Send a written notice that a eviction will be filed for non payment and explain it will show up on his rental screening for his new landlord, possibly preventing him from renting a nice place.

Explain what you have to offer and see what they can offer you.