What value is the “middleman” adding if he’s just listing the property on MLS?  

Majority already see the properties so why would they go through an unneeded middle man?

Below are two real underwriting examples I’ve been working through.Example 1: Duplex (North TX) — “seems affordable” but still ugly at 0% downPurchase price: ~$368kRents (conservative): $1,400/side → $2,800/mo totalTaxes: assumed ~2.20% of value → about $8,078/yr ($673/mo)Insurance: placeholder $180/moVacancy: 8%Maintenance: 8% of rentCapEx: 6% of rentUtilities: tenant-paidFinancing: 0% down, ~6.375%, 30-year amortizationResult (full rental): NOI: about $1,331/mo Mortgage P&I: about $2,295/mo Cash flow: about –$964/mo (≈ –$11,572/yr) DSCR: about 0.58Even with 10% down, it was still negative: Cash flow: about –$735/mo DSCR: about 0.64Example 2: 4-plex (DFW) — looks good on listing, but conservative underwriting is still very negativePurchase price: ~$775kRents (conservative): $1,450/unit × 4 → $5,800/mo totalTaxes: about $14,139/yr ($1,178/mo)Insurance: $6,000/yr ($500/mo)Vacancy: 8%Maintenance: 8% of rentCapEx: 6% of rentUtilities: tenant-paidFinancing: 0% down, ~6.375%, 30-year amortizationResult (full rental): NOI: about $2,846/mo (≈ $34,149/yr) Mortgage P&I: about $4,835/mo Cash flow: about –$1,989/mo (≈ –$23,868/yr) DSCR: about 0.59With 10% down, it improved but was still very negative: Payment improvement was only about $483/mo Cash flow: still around –$1,505/moWhat I’m trying to decide (and would love your thoughts on) Is it ever rational to buy deals that are negative by hundreds per month (or more), considering my goals.

No coastal hangovers.We are not a bubble market.We are not a crash market.We are a durability market.And durable markets compound quietly.If you’re local, don’t let national headlines distort local math.If you’re out of state, this is one of the more rational entry points in the country right now.Confidence doesn’t come from optimism.

Ace,I have said it for years and I still say it to this day as an investor you need to build a solid very well "Seasoned" group which includes a National Real Estate broker/Agent who works side by side an actual Mortgage Banker not a "Loan officer" no offense but its a middleman along with that a good GC and JV partner if you possible.  

Anyone have any tips on getting them direct to seller or from another source to cut out the middle man (wholesaler).

I’m trying to approach this rationally rather than emotionally and protect long-term cash flow and property stability. 

Having a professional middleman keeps things strictly business and stops those "emotional" late payments from becoming a habit.Local Landmines: Especially in markets like Cleveland with strict Lead-Safe laws and POS inspections, one legal mistake can cost way more than years of management fees.Real estate is a team sport.

If not, adding another clean SFH can still be a very rational next step.

I'd be careful - this kind of thing can put you at risk if you are wrong.A more effective way to do this that might contribute value to the world in some way would be to put together a reasonable, rational, and professional post, asking for feedback, and inviting the person you are accusing or highlighting of wrongdoing to respond.