But if I bouget it under the LLC, by law I have to buy it also for my employees.

This is useless unless the investor has a foundation in or has first been educated as to real estate principles, real estate law and real estate finance.

They mention some local income tax law. 

But in fairness to everyone and to be in good standing with the laws, should I be scrutinizing everyone this much? 

This applies to nearly all buildings six (6) or more units in NYC or any of the Rent Stabilized localities throughout New York State.I'm NOT active in New York City (or suburbs) any longer due to these guidelines or myriad other anti-landlord rules & laws; however, I can say many realtors do NOT understand what they're selling so BEWARE:  I've had realtors say the units "have preferential rents, isn't that great?"

I'm new to wholesaling and am familiarizing myself with the laws. 

Doing so ensures they've had notice sooner rather than later, and also so they know I'm running a business and not simply enjoying a hobby in real estate.On the other hand, if the tenant doesn't pay the rent when due, the law in Michigan only requires a 3 day notice.

Due to the nature of the possible time and repair costs this may lead to speak with an attorney that can advise you on law suit. 

I'm not familiar with the laws in Cali but they would need to be in violation of the lease for you to evict them. 

Our attorney told us the average judge doens't have the time to research all laws and will just go with the flow and award deposits to the tenant.Better off calling it a nonrefundable Holding/Reservation FEE:)- Fees are understood to be nonrefundable.