Although, some of the information was not required either time and some was required both times.

There are a lot of websites that offer the course online, or if you have a college near you, they also typically offer a class that satisfies the pre-licensing requirement.

Real estate is NOT a passive investment and requires lots of analysis and education.

2 are not cashflowing with the required expenses for vacancy at 10%, repairs at 10% and capital expenditures at 5%.

I'll add a few more things that can have a huge financial impact: required reserves, LTC (loan to cost), application or other upfront fees, and prepayment penalties.As a fellow flipper, I think it's important to have reserves, but they shouldn't be required as part of your funding.

2) Their contractor must be properly licensed and insured and we require copies of all this.

The requirement to do this generally involves an experienced GC signing on the borrowing entity as a 20+% owner thus making them a signatory on the loan and responsible for the debt which in most cases is not very easy to find.

These tax deductions do not require you to become a real estate professional.

Fix and Flip -Requires a minimum down payment of 10% with 100% of the rehab financed. 

If so I would thoroughly ready this to see what they require and what you agreed to.I doubt you can keep your permit if you refuse their inspection.If you are doing everything as you should, you shouldn't have anything to worry about.