Seems like a very bad idea...f) Don't bother with setting up LLCs for now, perhaps wait later for better economies of scale compared to the cost of procuring an address

You're just the 3rd party buyer's "procurer".

Cash flow is my main focus right now and I'm thinking if I tenant-proof the property and stick with section 8, where there is a multi-year waiting list just to get on the program and incentive to behave, it might be doable.In Long Beach for example, there are D+ and D-/F areas.

Another huge benefit of doing this is the VA loan and what it enables us to do.  

Now considering that the terms of partnership are such that I procure capital and he puts in the sweat money, and we split the profits.  

I am an agent with my license hanging in Colorado, Can my clients LLC use me as their buying agent for a property they want to procure in Utah? 

As for the LLC, if you're seeking residential financing (which is easier to procure, and cheaper), you will not be able to have the LLC be the borrower or holder of the deed/title. 

It enables them to safely make aggressive offers.

I'm definitely seeing that not all wholesalers are wizards in procuring deals.

Correct, if you want to procure a conventional, agency loan (IE, Fannie/Freddie) at the lowest rates/fees, you'll need to quit claim deed the property from the LLC to the individual borrower(s) name(s).