We did a proper screening just like we have with all our other tenants but these tenants completely did a 180 on us the moment the received the rental. 

How are agents wholesaling without their broker having to receive a percentage or are they getting a percentage of the deal ?

Craig Paulus and Paulus Law are excellent closing agents.

Would we be required to refinance to receive a new mortgage at 174,000 in order to shed PMI immediately or does it automatically fall off based on the new FMV?

NO way a LO only makes 1% on a deal.. maybe after DF .. there is other comp they receive.

Excellent point regarding the need for the entity to be registered in the state(s) it is doing business in.

We received the deed and then recorded it with city.

If you’re paying or receiving money through a personal account, it can get messy to deal with.

My question then would be, since you did not purchase cash but have $100K in equity, would the bank allow him to receive a refi. for $62.5k ($112.5k - $50k he owes = $62.5K)? 

They then turned around and sold the empty plots of land to investors that did not want to go through the headache, nor did they want the risk, of waiting a year to receive approvals for their investment.