I am a newcomer to real estate investing, and I'm willing to change my ideas if better options are available.3) Conventional mortgage aside, I am well-aware that all-cash buyers have a distinct advantage in moving quickly when deals become available, and all-cash is required on sites like auction.com.  

I understand that I should consult attorney if I am serious about pursuing this issue, but can you shed a light on advantage/disadvantage of sole member vs. partnership LLC for rental?

Read up, network, ask questions, and take advantage of the BP Calculators.

I see your point, but I think some of your advantage is if they are paid on commission irather tham flat rate, it is in their best interest to get top dollar for you.  

Hold till the end and take advantage and make good network from people in your local area.

Let the seller know you are a buyer and that you do not circumvent contracts (to do so is known as Tortious Interference and it is illegal) that the agent can facilitate the transaction and as a professional he has listed the property to help you get to the settlement table, use state and local forms and disclosures and will screen you from rip-off artist and dishonest wholesales from taking advantage of you.

It might be wise to do couple flips while you still have a job, the advantages of that is you still have the source of income and could qualify for conventional financing if needed.Now regarding your questions:1.

Should we rather look into a different type of real estate investing such as flips to take advantage of the forced appreciation?

Welcome to Bigger Pockets.Talk to a CPA, not just any CPA (might not be knowledgeable enough on all the Real Estate advantages) but one that works with Real Estate even better one that Invests currently in Real Estate.Check out your local REI Club, and network with others for their advice on Tax benefitsYou can research 1031 Exchanges.

I would like to help valuate this note so the wife does not get taken advantage of.