Given these factors, do you have any recommendations or suggestions on what I should do or anyone in this dilemma? 

If you're expecting a refund after your tax return is corrected, then I recommend that you let the Oct 15 deadline pass without filing this return and engage someone after the deadline to review your taxes.

The Water Department still asks for the affidavit because they don't consider 'equitable title' ownership unless it's 'legal title'.....so I'm wondering if I can specify timely payments of the water bill in the LC as part of the performance of the contract (or would you recommend I put the water bill in my name on a Land Contract situation too?)

Do you have any recommendations?

@James LuctamarI would recommend reaching out to Kyle Tom with Reafco property management or Donny Thompson with ERA.  

Look for places with lots of people wanting to rent, areas growing fast, and schools that are top-notch.

What attorneys do you guys recommend in Kentucky for wholesalers?

We have a bay-side waterfront property under contract in Panama City Beach. This is a new market for us.  Our current insurer only writes policies for < $1M.  ARV on this property will be in the $1.6M range.  Anyon...

1500 Well, depending on how much your reputation is worth, I would recommend that you do your best to get him his $1500 back soon as possible and never do business with him again. 

Any course prep recommendations also appreciated.