After discussing this situation with them, we asked for a double security deposit, which they agreed to, and signed a lease.

I have a lease option contract signed with the home owner for an agreed upon price, then I marketed that for higher rental price and asking price.Do you do closings as well?

You can legally sign an affidavit of interest and record it it unless the contract prohibits it. 

Did you sign off on the selelr disclosure? 

These would have to look good and easily readable on things as small as business cards, and things as large as real estate signs/billboards.

I have already used 0% 15 month APR credit cards and cash for work on the house remodel (yes, I have a plan to pay them off).I was thinking of getting a HELOC for the 60k loan, but my DTI is too high ( and my parents have no income for co-signing).  

The numbers are ok, but not so good that I'd sign up for this much risk (rehab costs, zoning).  

Ended up backing out before signing the contract.

No, they don’t care if you are an LLC, they want to know you actually have the money to buy since you are signing contract to buy.

I feel like they withheld that information when they signed the lease and now Im in this situation where the floor needs to be possibly replaced in their only bathroom while they are living there.