Anyways, I want to get into real estate as fast as I can(without cutting corners) to quickly build a portfolio.

Any contractor doubling their price for work done with permits is indicative of the corner cutting their original quote implied.

How much of that loss flows through to your personal return will depend on numerous other factors, so it is not a clear-cut yes / no.If this were just a single family home you were not renting, there is no depreciation.  

From what I have been told by lenders, it is not possible to set up separate LOCs since they are tied to the property.

Wholesaler tied up this deal and flipped it to me for a fee.

I also feel like there has to be a catch, no one gives away free money without some type of stipulation tied to it. 

However, if you are acting as your own agent to buy or sell your own investment properties you would be splitting any associated commissions with your broker just like any other transaction, but the broker isn't getting a cut of your investment profits.

I currently have most of my capital tied up in a flip that I literally just closed on today!

(Measure 3x, cut once.)  

Right now they have cut off all communication with us.