I have been unable to find a meet up within an hour and a half of us.

I am unable to see the inside of the property, the pictures were just offered to me as idea of shape. 

It is half situated on concrete slab and the other half is pretty much built on top of dirt (we think, we are unable to get to it) and I called the building department and there were no permits pulled.How should I go about negotiating down the price?

There is usually a clause in the P&S or addendum to the effect that if the seller needs time to remove any defects in title, deliver possession or make the premises conform, you agree to give them an extension and if they are unable to perform by the expiration of the extension, the seller will refund buyer's EM and the contract will be void with no recourse to either party.

Also I want to educate future homebuyers who are unable to qualify for a conventional loan about lease to own options.

I am unable to make the math work for properties in CA at this point.2) Once cities are shortlisted, how do I find the right properties?

Lenders are saying that because the LLC is jointly owned (50% for my partner and I) we are unable to do the cash out refi and that if we take it out of the LLC and put the deed into our names, we'll have to wait the 6 month seasoning period. 

The methods you mentioned are tried and proven to bring financial stability when the prerequisites can be met, but I didn't mention those methods in my description of wholesaling as I am unable to currently do them....

A lot of prospective tanants are either unwilling or unable to fork over four months worth of money up front and when other LL’s are asking three, it tends to cut down your list of prospective tenants. 

Eventually the distributions will exhaust the cash, then it gets even more complicated, especially if I'm unable to put rental income back into the IRA.