Send them a letter (not yellow letter because they are getting dozens of them) telling them you found their house to be apparently vacant.

They have made me write a lot of explanation letters.

The challenge with getting a loan under an LLC is that the cost of finance is typically higher (6%) and they may or may not have a balloon payment at the end of 5 years.

Have you written letters to them requesting additional pest control?  

In July the agent called and said the bank approved the short sale and an approval letter would be sent within 7 days.   

Start a letter campaign and see what you can do.

About a week later we received letter from city saying we did work without permit.

The memorandum (some use a letter of intent) approach is considered a "soft lease option" because the memorandum is generally a non-exclusive agreement that gives the seller the ability to walk away at any time if they choose to do so (even once you've spent all your time and energy finding a buyer and the seller decides to walk away at the last minute), but also gives you the ability to gain an assignable interest via the memorandum in a way that feels less scary to a seller (and generally you can structure the terms of the memorandum to have the rental payments begin the moment you assign, so you don't have to make payments while you're trying to find someone to assign to).You can also gain an assignable interest through a "hard lease option" that is exclusive between you and the seller, and will usually require you to start making payments at a specified date.

And, as you suggest, focusing on the first deal, not 2nd 3rd etc... 20-30% is just to much RIGHT NOW for a buy and hold, unless I get that down payment wholly or partially financed, OR I do NOT hold but plan for an exit as I've been recently been thinking like selling it somehow before the balloon or option period come up, however I acquire it.

You would then have to get a Letter of Environmental Protection, which will lower the value of your property and raise your insurance rates.Deleading generally costs $3000-$5000 per unit.