As a result, at least in my market, they get bid up so that any margin you're hoping for as a wholesaler soon vanishes when others are offering 75, 78, even 80% of ARV (less repairs).  

They made a choice, took continuous action until they achieve their desired result. At

This being said, both the cost of maintaining the LLC and/or the administrative issues may be well worth it, if a liability does result at some time of your owning the property and if the insurance isn't sufficient. 

This would result at roughly net zero at COE.