Severability: Should any portion of this Agreement be declared invalid or unenforceable, then such portion shall be deemed to be severable from this Agreement and shall not affect the remainder hereof.9.

Further, subletting while the house is under construction may present another barrier since portions of the house would be void of use and bar some level of occupancy.  

The fact that the mother in law is proposing that the wife gets cut into the deal should be enough to require her to give up a portion of her ownership as well.  

Wholesaling is frowned upon by LREC, but if it is done correctly you have nothing to be concerned with.You can read the actual law here:  http://www.lrec.state.la.us/pages/license-law-upda...Here is a link to a newsletter from LREC regarding the subject:  http://www.lrec.state.la.us/files/March2015.pdfThe part of the newsletter related to wholesaling is as follows:"According to Louisiana license law, real estate activity that requires licensure is defined as any activity relating to any portion of a real estate transaction performed for another by any person, for a fee commission or with the expectation to receive valuable consideration for services.The LREC has recently received numerous inquiries regarding unlicensed real estate activity.

You may also find that leverage will allow you to purchase multiple properties or a mix of properties and notes - thus creating some diversification within your real estate portion of your portfolio.  

That means receiving $192,500 (cash portion) and I will pay the commissions (both agents), and my portion of closing cost. 

Why are you confusing financing with the lease portion?

A portion of your dues should be going towards funding an account for things like this.

My fear with renting is then we are tying up a big portion of our working capital and then wouldn't have enough to do anymore flips.

Do you plan on living here and renting out a portion of the house?