Any suggestions or comments about pit falls we need to avoid or other advice?

I assume no, Do one or two then everything else will fall into place. 

(if fall into 20% cap gain add. 25k on 500k)

Issue I am having is that this falls below the 2% although I am able to aquire for less than the max proposed price.Using the 70% rule it works.

As Russell and Wayne correctly pointed out, if the wholesaler did not possess the license, and this transaction falls within the legislation's intent there's nothing more you can do.

If you can refi out after a few years at little to no cost should rates fall enough to find a better loan, it's good to keep in mind.#2: Residential is (broadly) safer, and retail's sure had its ups and downs over the years.

Many of the deals are falling apart, distributions "paused" indefinitely, people complaining about losing their principal and guilty pleas in a case against a syndicator that turned out to merely be a Ponzi scheme. 

And with a HELOC, if you think rates will be falling, you will immediate benefit from that with the floating rate on the HELOC.  

With a no indoor camera policy Air B&B can now say, "hey, our policy is no cameras" that way liability falls completely on the home owner.

You have lower labor costs for repairs as contractors are not concerned about falling off and a lower pitch means less area which equates to fewer shingles and material costs.