They exhausted every possible way to market: billboards, commercials, direct mail, radio commercials, and the list goes on and on.

If your goal long terms is to become an investor, then you will find focusing on investor skills, will help you become an investor rather than an inspector. to be honest, Never had any inspector training, but after buying a house you learn what you need to pretty quick.  

The only issue I am wondering about is how much will I be taxed if I left it under my name, rather than an S-Corp/ LLC?

Unless there is a very good reason to have a corporation, an LLC would likely cost you less to file taxes, setup, maintain than an S-Corp.

I've had one estimate so far and the guy said that he "exhaust motor" needs to be replaced.

This is more than an oddity to me - it makes the sink and the kitchen essentially dysfunctional.  

This will make your monthly payment way lower than an FHA Loan.

Every wall had to be scrubbed and painted, we had to rip up 90% of the flooring, laid our own tile(which turned out perfect but was one tough exhausting experience), tore down a non-permitted room and built a screened in porch, along with many other small fixes.

I would not pay them any money up front other than an appraisal fee.The lenders you mention are not "private lenders" they are obviously professional lenders.

So i would say....Play to your strengths (Shaq didn't try and shoot 3-pointers, play to jobs that only experienced contractors and estimators would thrive in, like Shaq plays to the low post.)Location mitigates risk. ( If you are on a hot street in a hot area, your margin might be cut a bit but you have a higher chance of selling at market value on time there, than an inferior location)