Whats the best way to generate cash flow for someone who is starting out wholesale?
Don't wholesale...it's a very technical (and sometimes illegal) activity. It's a huge misconception that wholesaling is a good way to get started in the industry...plus there are enough mediocre wholesalers to go around. If you want to "ease" into the business, do a live-in project...use an FHA loan to buy a distressed property (2-4 unit)...learn the renovation business, costs of materials and supplies, how to screen and place tenants...pull the equity at the end of the year and buy more property...
Either that or buy and hold...cash flow is overrated...investing in RE is about controlling assets that have the potential to create value (now or in the future).
If you plan on wholesaling check all the laws in your state as they differ. You will want to separate yourself from all the ones who aren’t as good or tend to be shady about their business. It can be done right and profitable as you build up a good reputation, but make sure you know how to market!
Otherwise, look into other areas of real estate as well! Buy and hold as mentioned above is a great way to produce cash flow. Wholesaling is constantly buying supply so you can see some dead months