A couple weeks after closing, the buyer came back to me and mentioned that my property management company signed new leases and filled the vacant unit with new tenant during the escrow process (after I signed the contract but before the escrow closes).The new leases are 1 year long and the new owner is not happy as he cannot raise the rents.

Now when we sell this subject property,  should we distribute proceeds to each partner of LLC and they handle their taxes themselves OR, should we first take the sale proceeds into the LLC which will call for capital gains tax and then distribute funds to all partners and then again they may have to pay taxes as their income for the year on the profits.What is the best approach in such scenario.

The seller has agreed to set up an escrow account to withhold funds to cover the lost rent moving forward.

As far as the stock market goes your money is at significantly more risk than a savings account and it is very volatile in the short term however over long term (10+ years) low cost index funds have proved themselves reliable, unfortunately this isn't a feasible time frame if you are saving for a down payment in most cases.

"Down payment assistance." consisted of raising the price and telling the people buying the paper that the people put down 20%.b. 

Problem is I have no earnest money, no proof of funds, truth is this is my first time trying to wholesale.

By your calculations, the final annual return still sounds way higher than if I used mutual funds or a money market account to save.

It seems as though there are many loop holes to jump through to get funding. 

Unless you own an index fund you also have to keep up with what is going on in the markets .

I do not have all the answers to tax questions, though, which brings me to the following situation.Like so many Americans, I found myself at retirement time with insufficient retirement funds to take care of my old days.