But, I believe that likely should be registering your LLC in every state wherein you are doing business that while I don't necessarily see much of an issue with holding TX properties in a CA LLC, if you're holding those properties out for rent in TX, then you'll likely want to be registered there as well.

Lowering your ARV expectations upfront helps you stay realistic and avoids sitting on a property too long with holding costs eating away at your profit.

They should collect your W-9 and use your EIN, have a written 1099 policy for vendors they pay as your agent, register and file all applicable state and local taxes (sales/lodging/occupancy, business licenses, any nonresident withholding) in your entity’s name, and keep security deposits in a separate trust account.

The conditional approval is still not cleared after almost two months, a small EMD, and to top it off, withholding material facts.

If the tenant is living in inhabitable conditions, do you believe this will stop them from withholding rent? 

They will get what's coming to them at some point. well if they did not pay their employees withholding tax's they are in deed Sheet that wont fly and those dollars are not discharged in BK proceedings.. circling the drain it sounds like. 

Withholding with your employer only knows about the income that you earned with them.

I’ve come across more shady situations than I can count—borrowers misrepresenting details, withholding key info, or trying to game the system.

I’d personally clarify whether you actually have to withhold tax at sale on a 1031.

Luckily, I took before and after photos/videos, so at least I have that documentation if she withholds it.