I know many people have done it this way,  but two major parts I am concerned about are 1) how do you handle all the paperwork such as W2's, 1099's business records, etc. without meeting in person?

They said they'd accept a 6 month term instead, but they're not being very forthcoming about what their sales record has been (I asked for the last 12 months just to get an idea, but they ignored the question :( ) and I'm getting a not-so-great feeling about working with them....The home is 2-stories, attached garage, 4bd 3ba, 2269 sqft and sits on a corner lot with a huge backyard (lot is approx .13 acres or 5662.8 sqft).

As you look to scale, just make sure to hold/build reserves for when repairs come up and take your time screening tenants as you will find a vacant unit is much less stressful than dealing with a bad tenant.

You might consider: Consulting a Real Estate Attorney – Your emails may possibly prove misrepresentation.Requesting Public Records – A FOIA request might reveal why the city denied you but later approved the duplex.Escalating to City Officials – Bringing this to local officials could expose inconsistencies.Exploring Tax Write-Offs – A CPA might help offset your financial loss, if it is possible.I’d definitely seek legal advice.

Below is the monthly average number of preforeclosure leads based on number of filed NOD, NOTS, LP occuring per month (from 10yr of data from recorders documents).

What is your track record of success?

This requires vetting their claims by reviewing EDGAR filings, property records, court records, Secretary of State filings and communicating with those who know more like city government, a more experienced investor, etc.

Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area.

It's always important to screen anyone you are doing business with. 

You should consult an attorney or CPA for your specific situation.ANONYMITY: When you create the LLC, your name is recorded on the documents and published on the Secretary of State's website for all to see.