For example someone trips and falls and hires the "strong arm" to get them "the money they are owed" the strong arm does a quick asset search of what is owned by the property owner (the LLC) and nothing shows up.

I think money can still be made however, I wouldn't be willing to invest there currently.

If you reverse it, you'll end up finding things you actually like.

But, I am not sure if it's worth buying given I will likely be losing money yearly and only gaining equity.

I actually grew up in Kuttawa, KY and went to high school in Eddyville (class of '93). 

You’d be shocked by how little actual screening many PMC’s do!

REPS was actually an incentive purposely put in the law to encourage real estate economic activity.Regarding your question, it is my understanding you would not qualify for REPS, but if you have a more aggressive CPA, they might be willing to make the case.

I also think there will need to be a solution found in the middle ground because there is a value that buyer agents provide to help buyers navigate the legal complexities, and I'm sure that a large portion of buyers are going to chose not to have an agent in order to save money.

Take the highest rate and keep as much money in pocket as you can, even if you only breakeven when you refinance in the future (6 months) you can get your payments down, potentially roll in any costs, and skip a payment or two. 

For example, a self-directed IRA custodian, and who you select can depend on what you want to invest in and how much money you have.