They would offer a more hands free approach, but eat up the profit in return.

Let's say things go wrong down the road, any profit from the Wrap has been spent of course, the DOS gets called.

It started with really buying my own personal home, then selling and making a small profit.

I think a bit simplistic when it comes to business; solve problems 4-profit. 

I do not want to sell because my profits after closing costs will be about $15K.

Theoretically, they split any profit.

Should I buy it and take  500-600 less profit per month knowing I can sell it for a large profit as is or even more if completely remodeled?

It would actually be a net PROFIT given the huge increase to tax revenues. 

But again, your profit after selling costs (and any capex improvements) would have to be in excess of $60ok to really make sense.

It is not a scam, but you will have a very hard time finding a deal that is worth working with them, and frankly you are going to have to find someone that does not understand at all what their property is worth and get them to accept a super lowball offer to make it worth it. even then their points and fees will eat up so much that getting the 10% down loan will have a much much higher profit margin.