It's hard to tell from the language if this is a requirement (to minimize absentee out of state landlord issues) or simply to state who might be working on behalf of the out of state landlord as more of a safety precaution/heads up (e.g.

Does this simply mean including rehab costs in the initial loan?

It is simply Subject To or Sub 2 as some put it.

They were simply selling and using all of their techniques. 

I simply have no experience here.Has anyone had a similar experience who can advise on how you handled it?

Can I simply draft up something that states "this terminates the lease I signed on such and such a date."

@Lance Marshallsince you have IRA LLC I'm assuming you wish to invest in alternative assets, otherwise you could simply open Fidelity IRA to invest in stocks/funds.

Because of my W2 and lack of debt outside of real estate, the approval process was easy and straight forward.  

I assume you had a financing contingency and if that is still in play simply cancel your contract under the financing contingency.

Simply calling to ask them to be on your list is a quick way to being shooed off phone.