I have 2 buyers who liked a remodel I already have under contract.

i'm not aware of any requirement in Michigan to file a tax return or do anything other then pay a basic $25 annual fee and file an annual report which basically indicates whether there are any changes to the LLC.  

We recently (yesterday) fell out of contract with a buyer who was going to purchase the place for $211,000.. after closing costs, giving us a nice profit of +- $70,000.

If purchased at the right price, properties in the area can make great rentals, owner financed deals or even flipsIn towns such as Refugio, the typical buyer is going to utilize USDA financing for the 100% financing.  

From those questions the agent knew he was going to have to walk the buyers through the entire process.

The SFR you mention sounds like the way to go for this reason: It's modern construction and it's attractive to a larger pool of buyers.

You are asking a stranger to lend you basically all the money for a deal with no experience and no skin in the game. 

basically, something that most ppl do without even realizing it, but its not that hard with the rate of appreciation around here!

I'm encouraging him to save his entire paycheck (since all basic needs are paid for) so he can invest in real estate later. 

They'd laugh me right out of the office because there is a very low percentage of buyers who are purchasing single family for investments and a high percentage that are purchasing a home to live in.