like what kind of surprises can we see with REO like backed taxes, association etc?

I would just mindful of how soon before that seasoning requirement is met that you start the process because things like credit reports, appraisals, background checks, etc., are only consider valid for a certain period of time.

I am not sure if this is the right place or not but I wanted some input into any obvious issues with my lease option offers to the tenant buyer that earns plenty of income but doesn't have the cash right now and wants to improve credit before purchasing but would like to lock in the price as our market is still struggling with inventory. 

I was able to find a lender who was willing to lend based on credit profile and up to 80% LTV even though i dont have experience.

So instead of paying the bank for a home equity line of credit on my first home and paying them interest, I was able to use a personal loan to myself via my employer 403b and pay myself back with interest. 

His primary mortgage was sold to a private lender in the early 2000s and he claims he had to give an explanation each time as to why he financed with a private lender with such poor reputation every time his credit was pulled.

My credit is above 800.

I have around $165k in savings, with an option to withdraw $16k from my 401k after taxes and fees.

Wont LLC comes with additional annual tax filling complexity ? 

FHA loans are generally more straightforward, with lenders typically requiring verification of your credit and income.Be prepared to provide financial documentation, as the lender will need to ensure you can manage the additional mortgage payments.