In order to get a loan to do this (since I am self employed) we may need to go with a private lender as opposed to a conventional mortgage, so we would need a larger down payment.

Look at the police records for the property as well as the local newspaper to see if there is any talk or rumors of local employers closing shop.

For some reason, our bank (1stBank) will not allow ACHs out to our owners (I think it has to do with my Employing Broker's credit?)... 

They are using and encouraging state A.G.s to utilize UDAP as a broad method to prosecute lenders not in violation of anything concrete.

Under the circumstances that they have tried to list their house themselves with no success or they have listed their house through the traditional method without any success.

If the risk of a lender initiating its DOS clause and is of paramount concern in a Sub 2 then there are other methods to mitigate this risk.I've bought property using a land contract of sale, that in itself has a lot of similar risks of a Sub 2 transaction remaining unrecorded, and have been researching Sub 2 transactions.

Any advise, please consider the fact that I'm self employed and may have some issues getting a mortgage right away unless I use a private lender.

Regardless of your contractor status or whether or not you form an LLC, you will probably owe income tax and maybe self employment tax on any profits you make.  

Only you can decide how much that is worth to you and the business model you'll employ going forward.

This being the first time I may use this method just want to make sure I take all the correct steps prior the renovations being completed so everything is situated if this exit strategy is necessary.