I think that is a smart decision you have made, I am really interested in commercial (Retail, not residential) Since that is what my parents have always invested in, that is what I am most comfortable and familiar with.  

I am going to offer seller, who owns the property free and clear, to do seller financing, in a deal where I will pay him the full retail price of his property, for $135,000.

They were generally retail purchases.

They are all listed for about 150K-200K, but arent selling because they have tenants and cant be shown to "retail" buyers.I am a realtor, so I have a bit of an edge for negotiating a good price...

Also, since graduating with my Bachelor's I have worked in several industries from the Pharmaceutical Industry to Shipping Industry to the Oil & Gas Industry and even dabbled in Online Retail.

A more accurate comparison would be purchasing homes at retail price and letting them appreciate in value vs. purchasing stocks at retail price and doing the same thing.

The reason is that banks offer you higher retail rates and one set of underwriting guidelines whereas a mortgage broker can use the exact same bank and get you a lower wholesale rate and lower fees.

. + MAO)$$$ - Closing costs (4% / 5%)$$$ - Fix up$$$ - Interests ( possibly from a hard money lender)$$$ - Holding (for sale, 6 months probably)$$$ - Re-sell (retail price)$$$ - Rehabbers Profit ($10 - $25k)______________Would it be ok to include in the ARV formula the % of closing costs of the ARV that the rehabber would possibly pay (ARV x.70% - rpr - 5% closing - pft = MAO) or not.?

This is all I am doing now, I do not deal with retail buyers and sellers at the moment, I tried to, but found it to be a distraction. so I would also need to figure out a way to cover my monthly expenses both business and personal asap.  

You should see a massive increase in home owner activity and interest in purchasing.