It's a quicker way than having to deal with the seasoning of a normal conventional loan which is usually about 6 months.

The seller takes it in the shorts by discounting the sales price to normalize repairs. 

It sounds like this was a normal seller/buyer transaction, and that would have no right of redemption. 

Making the competition for them higher than normal.

@Michael Payne there is not set amount that is normal, but in my market you normally will pay in the 5-6% range for a full service agent.

Normally its sold under personal name, but I will have more than 1 property closing and don't want to jump tax brackets and pay more taxes, so I am considering creating an LLC and transferring the property into that and then selling it.Any downsides/negatives to this route?

Don't use your new income to improve your lifestyle with new clothes, a car, renovating your own home, etc.

If you are buying a distressed property, you normally take it as-is.Give her two options.

Is this normal?

As noted earlier, this would not be a "normal" 401K distribution, as my husband and I qualify for the special CARES Act (Section 2202) that allows us to replace the funds with no penalty and all taxes reimbursed.