There is no wrong way, the LLC gives you more protection along with tax benefits. 

They said the applicant can contact them to request information directly.How am I supposed to get verify information if it essentially filters through the applicant? 

The place needs a lot of cosmetic work, but is essentially solid and we want to buy it with IRA funds, and then use it as a rental.

Groups of professionals are created because everyone benefits from being involved with other professionals. 

I know there are many awesome realtors here and I've compiled a list with dozens of entries of the benefits of working one a good realtor.

The S-Corp benefits may not ever be achieved in what will presumably be a short term entity. 

From listening to the podcasts it seems essential to have a good real estate investing team.

I don't know if I should partner with the current homeowner, or have the contract transferred to me, essentially transferring his equity to me, or what?

But if the market smiles on you .. then when you sell you can reap the rewards.but do remember unless your going to 1031 and keep rolling up you wont really see that cash.. and if you want the cash then you will just give back your tax benefits in the form of recapture.. but you will always have the debt pay down from your lease tenants.. .. and in the old days if you could get a tenant to pay off your house.. then that was OK and I still think that is OK in strong markets.. 

There are a few possibilities that may benefit you depending on what your overall goal is.