I don't think this is a scam, but I am concerned with the underwriting procedures for their properties.  

Yes, I would be concerned because how is the wholesaler going to get paid and in turn how would you get compensated?

One of my dad's biggest concerns is dealing with the tenants & toilets in real estate or dealing with the paperwork when it comes to managing your own IRA.

I was mainly concerned about the mail ...

If you have any follow up questions related to this concern, please let us know.

I'm reasonably conservative so this may not be as much a concern for you.Hope this helps...All the best,Mark

My concern is the OF with repairs $30K  with down payment of $5K down, find out what kind of neighborhood it is and check the crime area. 

Also, is it a concern the amount of younger people moving to the area that may not be able to afford the increasing prices and eventually start moving away?  

As far as I am concerned, they did not accept your offer as is, so I guess you could "legally" move on if this is what you want.The pet deposit I charge (depending on the property) is typically $300 to $800 and an extra $20-30 a month for each "approved" pet.  

Then do everything @Marcia Maynard wrote.Or give them 30days to leave the property if you're super concerned about it and spend a few thousand in rehab costs to fix up the unit.Personally let them stay and keep collecting rent and budget of when they move out