( I keep some and sell some as I always have 8-10 places for cash flow)  The only difference is I rehab right away, wait the 6 months seasoning for the appraisal and get all of my renovation costs and up front cash purchase costs back so I have essentially no money  in after the renovation. 

Essentially, he is paying you $4,000 per property to be a bird dog for him. 

I'm essentially looking for anyone that has had experience in my situation.

Many folks believe that because Chicago is much more diverse in its industries, economy and has better job creation strengths, that Chicago will be immune from Detroit's death spiral of (a) borrowing and pension debt, (b) failure to control the costs of government, (c) loss of state revenues, (d) bad public schools and (e) ever increasing tax burden for working, middle class families.My interest in this question stems primarily from the dramatic price declines in Detroit real estate prices before its municipal bankruptcy. 

Seriously, essentially a wholesaler is acting as an unlicensed realtor.

I have been in a short sale negotiation where bank countered, and I raised my original offer by $400 (essentially staying the same but creating a slightly higher number) just so it would show as an actual counter offer in their computer system and look like good faith negotiations have been made for investor to approve.

The money would essentially just be routed through this account.

After a long time;  years,  I got a letter essentially telling me to mind my own business - the EPA had their own methods and didn't need me helping them.Incidentally;  I had the exact same experience after reporting illegal immigrants.

In any case, the federal government is going to continue to look for revenue in every nook and cranny of the tax code. 

Screening is essential; if a tenant seems too good to be true they won't stay long, we have the best luck with people who already have roots in that neighborhood.