So I am preparing to started a business in wholesaling, yay me :), and one of the major components I have been tinkering with is how to ensure what I have on my hands is an actual deal.

I would love to get my hands on project like that!  

I know there are stocks that beat that, but what percentage of stockholders have had the foresight and fortitude to hand on when the market tanks.  

The owners are transferring the previous security deposit over to the new tenants without even going over damages.

I have done a handful of renovation loans with local banks here in town and would be happy to pass the contact to you.

They try and push the other 2 siblings still living there to just give them $60K each (so $240,000 total) and then the 2 siblings could keep the house, but they have no means of obtaining a loan for that much and none of the other siblings want to co-sign for that.Minus the 2 sibling tenant situation, he said he'd be happy if everyone got $60K and the house was off their hands.

I think I have, now I'm looking for hands-on tips that should tell me whether to go though with the closing or walk away.

Just transferring the ownership of the home to an LLC won't change who is responsible for the mortgage. 

I think mace or bear spray on your key ring in your hand would be more effective.. 

Make it clear that he is responsible for insuring the rent is in your hands no later than midnight on the first of each month for the entire monthly rental fee.