Some of the main points (all of which are availalable on this site/podcast) were the evaluation of purchasing a property and making a list of all items that will eat into your profits. 

I’ve talked with a couple folks and friends in that biz about profit sharing or straight rent on the commercial space.  

We agree that the margins are tight, but according to the long term outlook, profits increased, so holding it seemed to be a good deal, but again, the area might not call for the type of increase the deal analysis is dictating.  

When you purchase a property, there needs to be A LOT of equity so that your buyer can purchase from you, pay for rehab, and still have enough equity left to be able to sell at a profit.So, if the value is $100,000, you buy at $50,000 - you sell at $60,000 - your buyer spends $20,000 to fix it up and they sell it at $100,000 meaning they can make a $20,000 profit. 

Generally speaking I'm for it,  but it depends on alot of factors (like location, cost,  etc) as to whether or not it's a profitable venture. 

The $1500 in origination charges isn't the profit center, the sale of a fresh new mortgage for $10k on the secondary market is where the profit is, that $1500 is small potatoes.No reason not to call your original loan person. 

And that formula is (Gross rents X.75% Minus PITI = Net profit or loss) so lets use some numbers in that calc.

The property is currently zoned as a multifamily, but all the research I have been doing suggest that we could make more profit if we sell it as a single family.

College Hill next to Lafayette College in Easton, PACost of Property:  $170,000Appraised ARV:  375,000 low end with $425,000 high endRenovations:  91,000 and will take 6 month to completion$60,000 In liquid assets, Credit scores between 690 and 730Projected Net Profits are $100,000, in my estimates, this is a HOME RUN!!

The agent is asking for a commission which I understand he needs to make money someway and if I still walk away with a profit I would be ok with that.