As long as your the only person in the LLC, the LLC is taxed the same way you are, the IRS recognizes the LLC as being just you so you aren't taxed differently or more heavily.

Well aren't we a tolerant bunch? 

Maybe the contractors who bid aren't a good fit. 

However, the directories form says PO boxes aren't valid.  

Seriously, "the cops have better things to do".So all in all, we were kinda at a loss of what to do, and now they are on Section 8, they aren't behind on rent, we get paid, life is great.

The bigger challenge is likely to be financing, fnma, freddie, HUD aren't going to touch that - giant marketability issues.  

That dictates the outcome, not what a bunch of BP'ers who aren't privy to the deal say.    

Perhaps the buyers will change their minds, perhaps they won't feel you gave them exactly what they wanted, perhaps the market will drop, and if you've done renovations that aren't marketable to a wide segment of buyers, you may have to do a new renovation to resell.If you do move forward as the "builder," I highly recommend you work with a knowledgeable attorney to get a rock-solid contract, get a big deposit, and make sure the numbers work in your favor at all points in the process.

Taxes aren't really a closing cost (except maybe for a buyer getting a conventional mortgage that requires an initial escrow deposit).I'd expect that most wholesaler contracts would not generally say the buyer would pay the pro-rated amount of real estate taxes owed.  

Just let them know you aren't pleased with how long it's taking to get the place rented and if you really want out they'll probably let you slide.