All of those things have tangible (but hard to quantify) value but if you're sitting in San Diego, Colorado, Michigan, etc. that tangible value drops to a big ol' fat zero. 

Those fat margins can be very tempting, but there is a reason they are giving it away!

One month for permits, three months for construction (but likely four to five), and then sold within another two months.Comparing the building department in Oakland to Berkeley: We acquired a lot in Berkeley, and that one is going to take a nightmare-ishly long time to get through the building department, but the profit is fat enough to be worth it.

We recently noticed a large crack down 2 of the 4 burners.

From an outside perspective, this could be a great investment for you or it could be a money burner and a headache.

I charge $10 each if I have to replace the burner pans in a coil top stove.

So yes, if you can afford to put down $200,000 and see NO return from it for 25 years, but THEN you get a fat check for $1,500,000 (in 2040 dollars) when you sell (it should have been for $3,000,000, except for the great crash of  2025), then yes, many people use this approach.

Without an Exclusive Buyer's Agent Agreement, I'd say that realtor is out like the fat kid in 5th grade dodge ball!

Numbers are numbers, last time I checked they don't smack you or call you fat so I don't understand how they come with emotions. 

Since it sounds like there's plenty of fat on this deal, I would say do what she asks and do it right.