I am concerned about it being done improperly, prettied up with paint, which many people do with even house flipping as I did this for a number of years, and then a short time later after everything is done and everyone exits, it all comes apart and you are left fixing it.

Will you have a dedicated PM to call for all your questions/concerns or do you call a general number?

As much as equity sharing is profitable for you, it is also a way to show your clients “Hey I am here for your success as much as you are, and I have a personal investment in you” which is an incredibly inspiring model.I would however say maybe scale your equity based on the current state profit margin of your client, or even work in a sliding scale so it doesn’t turn off potential clients who may be at a slim profit margin as is and are concerned about it getting any slimmer.

You have bills to pay, it's sad that they have issues but it's not your concern and your bank damn sure doesn't care. 

I also appreciate about your concern, thank you so much! 

Are there concerns like location, zoning or land use, or is it simply about passing the inspection if it's a residential use?

Concerns & Risk Mitigation:- What are the biggest risks you look for?

The agent is willing to work with me and offered to pay our agent a referral fee but that they would need to be in the deal someway since it was their opportunity - which I honestly understand and would not try to snatch from them.I was concerned with the pros and cons with either route - direct or through an agent.

I am concerned about theft during and after renovation so a policy that can cover that would be of utmost importance. 

All very unlikely.Also, I'd be highly concerned about that 18% vacancy rate you'd be buying into!