I have been watching the MLS through email alerts and homes in this price range tend to go under contract in 7 days or less.  

I don't want to move in, and not doing so requires more money and holding costs; but once I get that first great profit maker, I should be good to go.  

I've been reading a lot about wholesaling and I was wondering how to go about it in Philadelphia . do I need the real estate license  to do wholesaling in philly and what are some northern things I should look out for 

Are online websites such as Legalzoom or my company recommended to start my LLC or is there a better way to go about it?

And, you don't yet know what terms to go after - you don't yet know what keywords convert well for you in your area.Start with AdWords before venturing into SEO, paint your targets, use PPC as a control to test landing pages, messaging, and conversion rates.

I think a lease option would be great but need some advice on how that works -- I would also be willing to go in on this deal who has more lease option experience (note - I do have a partner as well)Looking forward to some advice!

However, we're finally at the point where we'd like to start making offers.At the moment, I first calculate using the typical BP rules-- 50% rule, 2% rule (I allow them to go down towards 1.25%), 70% rule with flipping estimates, $100/month/door, etc...  

The #'s still work if i can get it filled, but there would now be time and $ hurdles to clear before getting back to the financials I thought I'd be stepping in with.Now that the situation has changed, am I still obligated to go through with things or forfeit my earnest money?

Not try to go around one another's back to get deals. 

Being honest and straight forward with friends to me is the way to go.