If your LLC is not doing business in MN, then it would seem to make sense to register it in CA to avoid the need to pay registration fees in 2 states, if you can avoid MN filing fees and requirements. 

It just seems a little too good.

It seemed the appraiser knew EXACTLY how much I was looking to borrow and solely based the results of the appraisal on that.

Seems you'd be well served by taking some time to better define your goals and the timeline in which you want to achieve them.

Or what seems crazy to me.Is it legal to create a 501c3 organization to buy investment properties and rent them out at fair market value?

In a wholesale transaction the seller is in some kind of financial trouble which the wholesaler is helping to resolve.You have two options an assignment or a double closing:I haven't done an assignment myself so not sure completely of the process, but in a double closing there is already a contract with the seller and the wholesaler who is fixing the liens on the title, when that is resolved there is a closing date where the wholesaler execute the contract with the seller and you execute the contract with the wholesaler.In general the closing cost in these type of transactions are covered by the buyer which it could be around 3.5% and it does not include sales agent fees.There is one thing that I didn't understand, it seems that the hard money lender is in charge of the transaction.

Also, seems like houses are sitting on the market a little longer than they have right now in my area.

As a side note: Your closing costs also seem low

1000 bucks for carpet replacement seems high.

It didn’t seem like a deal-breaker at the time, especially since the previous owners appeared eager to sell.