This is typically done with what’s called a “quit claim deed”, essentially a transfer of ownership from one entity to another.

That's essentially exactly how most real estate firms operate with a team structure.

He would be the sole owner of the LLC, which then owns the property, essentially. 

Those numbers include maintenance and cap-ex but it seems to me that they’d be negligible the first few years of owning the property. 5 years down the road when I need to spend some money on repairs, the appraised value and rents of the property will be higher, essentially increasing rent/PP to above 1%. 

I doubt that you'll be taken seriously, but you can essentially continue to contact the seller until they block you I suppose.

He would essentially make his payments to the siblings his mortgage (interest free) and rent it out at a figure to take care of insurance, taxes and possibly even cash flow depending on the numbers. 

It was essentially and FSBO as Mik didn't do anything but put up the listing, make changes, and mark the property as pending and sold.

The main thing to remember with wholesaling is that it’s essentially about the seller and the buyers.

After the 3yr time period and I receive the tax deed is it still possible to have a redemption be viled against the property As soon as you become the owner of this property the current owner essentially becomes your tenant.

Flipping is a straight up business (and is taxed as such) and REIT investing is essentially buying and selling stocks.