This incident triggered every trouble I'm experiencing now. 1) The officer from LAHD is after me saying that I need to register the property as a rental property and evict her with relocation assistance, which cost about $9000. 2) The Building department is after me with the order to comply: which I believe it might be better of demolishing the house and rebuild it. 

I commend you for pulling the trigger based on having just enough experience, and not over analyzing. 

I was getting locked in to start in Cleveland when the agent I was working there said that you can never redeem the full amount of the voucher because it’s always higher then fair market value of the rent.For example. 3b 1bth house voucher is roughly $1,550, but the rents get no where near that much apparently and cap at around $1,300.

Tell them you would like a construction loan interest only first to make some changes, before locking into P/I on the new properties. 

Since you have skip-traced lists with them you pretty much locked.

If "the problem is the price that the seller wants is quite high and comparable to on-market value" then why are you trying to lock it up on a wholesale contract?

This is where I see so many people get caught up and are never able to actually pull the trigger on an investment property.  

You will need to clearly set forth the circumstances that allow or trigger the transition of a new trustee.

But I also tell them the house isn't locked up until I receive a hold deposit.I keep doing showings until I get a hold deposit from someone I've qualified.

Any voids, ridges, or gaps under the LVP will lead to excess movement and splitting at the tongue/groove or click-lock joints.