Take the rent, multiply it by any % you like, and tell me if that % will actually pay for what it's supposed to pay for. 

You are supposed to have a license to wholesale.

It was suppose to be $6,500 in closing costs but the bank would only allow $4,000 since it was an LLC loan.

Well ... a ‘strange’ lawsuit because the buyer was supposed to do his homework better (as experienced investor call it ‘due diligence’).

If the later then I suppose just research (probably on BP) will tell me who these folks are?

Well, I suppose there are aspects your can estimate from afar and others I wouldn't without viewing (or having somebody view) the property.Specifically for the rehab, if this is an out-of-state investment, having somebody you know and trust in the area would certainly be beneficial. 

Can't have an investor go in blindly and unassured if this is supposed to be a TURNKEY!

@Scott Lyons  SDIRAs for Real Estate is supposed to be used for passive income which this model fits. 

I suppose my interest is in a cross-collateralized loan using my current paid off property to buy a new property that I would live in as primary residence.

You were always required to provide something and simply got away with not doing it for awhile, now the party is over and it's time to put things back the way they were, or are supposed to be today.