Yes, Tessa, you absolutely need to have a Title Co do the closing.It is possible the seller may be in violation of the new Dodd-Frank, and SAFE Act Laws, but it is not necessarily "Likely", There's a pretty large safe haven if they're an owner/occupant, and depending on the state, a number of transactions per year may be exempt (You didn't mention the potential problems with the balloon payment if the buyer is also the occupant)As with any investment, Due Diligence is required.

There's very good and very bad areas, it's difficult to find properties at a reasonable price, in a safe area that can cash flow with solid tenants from what I'm assuming.

Again, Alhambra as a whole is a safe bet to invest in as long as you're familiar with it's pockets, the demographic buyer expectations and rehabbers budgets (obviously), as long as the correct price was paid before rehab you should be fine. 

Bedrooms should have smoke detectors and a safe exit point.

I am looking for the best techniques for buying wholesale properties.

More to technique of lining up future financing as that gives you time to actually get a loan and close it without being in default of a balloon payment.

FOR BUY AND HOLDING REAL ESTATE***GOOD***-If you plan to hold real estate, the safest and most risk avoidance way to use an LLC, is to set up a LLC for each and every single property that you will own. the reason being is that if you are sued and are at fault then they can only take as much from you that is in the LLC. lets put it this way. you have 4 properties, Total value $200,000. each of them have a LLC and are valued at $50,000 each. if a person is hurt for some reason and they find you at fault for it, the person can seek $200,000 in medical payments from that LLC totaling the value of the LLC. in other words they can only take $50,000 and not the total of $200,000 in value, and your 3 other properties are safe.

3) SAFE & Dodd Frank compliant loan package / RMLO / $ ???

The HSUS recommends pet owners use a safe antifreeze in their vehicles.

As long as my total costs are at or under 75% ARV, I will get my cash all back out at minimum 2 months out.Working proactively, I can roll this money over (same money) at least 4 times a year (conservatively since it could equal 6 times based on 2 month increments) playing my timeline safe.