Most for sale bank owned homes are under the same listing agent or agency within a given area.

they could have an exclusive agency listing, where the owner retains right to sell and agent only gets paid if they bring the  buyer 

I don't want to force them to move, but I feel I must make some adjustments to rent rates as well as talk to my insurance agency.

If you don't have a written lease from the purchase I'd check out your local and state agencies for advice on what the law is in the state in addition to consulting with an attorney.For example, where I am (St Louis, MO) the city has a "landlord's guide"https://www.stlouis-mo.gov/government/departments/...which includes things like sample applications, information on the eviction process, and citations to the state landlord tenant law.The Attorney General puts out a state guide on Landlord Tenant lawhttps://www.ago.mo.gov/docs/default-source/publica... though an attorney would be the most helpful when it comes to knowing what paper trail you need to create.  

Yes, I understand how "wholesaling" works and I think phrases like "grants the right to market the property for sale" are what get non-licensed wholesalers in trouble with licensing agencies and the law.My understanding of how this should be done is with a standard (or better written) purchase agreement with the "Buyer" listed by name "and/or assigns."  

USAA is allowing us 10 rentals and above that they go to some outside agency that they have some connection with.

Consumer Reporting Agencies are not allowed to report this record since there was no conviction and is more than 7 years old.

TExas in my experience is pretty wide open for all kinds of easy flipping type stuff .. you can tye property up with 100 dollar options then flip them.. and I think its perfectly kosher to do so... could not do that in many other states.. but as stated above first thing you do is check with our state governing RE agency for the definition of licensing.

Initially, in this deal and according to MLS Seller buyer agency commission is split 50/50 (ok great)I submit my offer $9,500 below asking( including my commission in the purchase price to lower the purchase price and the seller counters with "I'm not paying any of the buyers expenses including commission.

I have called a few major insurance agencies (Farmers, MetLife) and so far the quotes I am getting sound fairly outrageous, at least compared to what I am seeing across the site and my expectations.What kind of rates are Chicago investors seeing for multi family apartment buildings, and what agents/companies are you using.