He recommended 5/8th drywall since it will help the structure...

Its structure, plumbing, electric systems are sound.

I'm interested in the condo market so structural issues would be taken care of by the building. 

In the financing aspect of the software, I show them earning 3% compounded monthly, paying interest only, monthly for 5 years.I also plan to structure a hybrid debt/equity partnership.

I might try and structure something like this.* "I would agree to buy this property for 50k provided that it appraise for at least 55k and IF it passes an inspection with no material faults."

A thorough response as always.I have my own take, and as any attorney will say, this is not legal advice...For the asset protection purposes you need both (1) insurance and (2) properly structured company for litigation protection, an LLC/LP/etc.Insurance protects your from nuisance that occur on the property; i.e. slip and fallThe company structure protects your assets from litigation liability; i.e. gross negligence (health and safety, alleged known hazards, fraud in the sale of the property) as well as someone getting to your assets by suing you personally (e.x. you got into a car wreck that exceeded the coverage of your policy, now they can go after your assets)The due on sale clause is often a concern, but me and my colleagues view it as a very low risk for a number of reasons.

If I choose this structure, how does a Founder compensates the Qualifying Broker for this, salaried W2 or revenue split?

Attorney fees are expensive to properly set up the structures, and a poor structure is barely better than no structure at all.

House was built in 60s seem to be structurally sound but needs lots of cosmetic/updates.  

Any suggestions on the nuts and bolts (contracts, how you structured deal, what % rate of return you offered) and how you managed the relationship to help the investor feel comfortable?