It was a Homepath properties (foreclosure) that we were going to get a rehab loan on.We got a quote from a certified contractor and it was much higher than the initial quote from a different contractor.

Ok, now that you have taken your initial step, below are some quick links to get engaged.Since you expressed an interest in wholesaling, I added the below links for your review while you wait for local connections.https://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ (Ultimate beginners guide to wholesaling)https://www.biggerpockets.com/renewsblog/2014/10/09/getting-started-real-estate-wholesaler/ (BP Podcast 091 Wholesaling) http://www.biggerpockets.com/startherehttp://www.biggerpockets.com/meetSetting up Keyword AlertsHow to Use @Mentions on BiggerPocketshttps://www.biggerpockets.com/ruleshttps://www.biggerpockets.com/inviteshttps://www.biggerpockets.com/forums/categorieshttps://www.udemy.com/biggerpockets-real-estate-investing-course/ (video with 64 lectures and approx 6hrs of material)https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)REI can be very daunting, but, before you go searching for that 1st buy, please take a few minutes to bone up on the tips in link below.https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/REI books suggested by BPershttps://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REI)http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?

Ok, now that you have taken your initial step, below are some quick links to get engaged.I take it that you are interested in wholesaling, but, lack the basics.

I feel it is being grasped though much quicker than I thought initially.

@Seth Tucker Could you try doing seller financing, with small initial payments (i.e. amortized over 20-30yrs) with a balloon payment due in 12 months.  

The realtor was pretty firm that I wouldn't have to pay anything unless we opened escrow, and that the initial deposit would be refundable 17 days from the opening of escrow. 

Was wondering if an LLC could be used for the initial investment purchase of the rental and then I could use my own name for the live-in as first-time homebuyer.

You already have some tools in your toolbox....no pun intended.Now, you simply have to work on the other elements to progress your REI pursuit.Ok, now that you have taken your initial step, below are some quick links to get engaged. http://www.biggerpockets.com/startherehttp://www.biggerpockets.com/meethttps://www.biggerpockets.com/alertsHow to Use @Mentions on BiggerPocketshttps://www.biggerpockets.com/ruleshttps://www.biggerpockets.com/inviteshttps://www.biggerpockets.com/forums/categoriesREI books suggested by BPershttp://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?

Initially I began my investing career looking into fix and flips, then shifted my attention to the Notes side of the business.

The strategy that you mention has been changed so that you will not receive the full tax free exclusion upon sale if you only live there for two years when the property was initially used as a rental property and then later converted into a primary residence.