If we accept the online 'estimates' (this part could be negotiated between myself and the lender of course), that could potentially allow access to capital of $732,491, assuming an equity requirement of 20% (this percentage would also be a negotiating point, I realize).

The local bank I am using in Wisconsin told me that I can only apply for a variable loan (Fannie Mae) because the address I list on my tax returns is outside of the US.

If I flipped a house in CA what percentage of the profit would go to CA taxes, and if I flipped a house in say Arizona, what would the take be doing business out of state? 

Your percentage ownership is going to be determined in large part by how much cash you put in.  

For a certain percentage of investors there are situations that warrant setting up the LLC.

But there have been a lot of other changing variables and we weren't in a position to ask for concessions.Even if we did want to ask for a concession, I think it would be a hard argument.

Also, the tenant is responsible to pay rent equal to 30% of their income and the city program will pay the portion of rent that is above this percentage.

Then we could split the money at a predetermined percentage when we sell.

Check your listing agreement because you may not be able to 'fire' them but performance is a key variable to a listing agreement so it sound like you have cause. 

It's a 2074sf 3-2-2 in a nice area, and I could wholesale it with a tiny assignment fee and almost no repair budget, but the property condition is the last variable I need to fill in.