When we purchase a 120K property here, it will received full gut (studs out as you say) and when Humpy-Dumpty gets put together again, it will be with modern insulation levels, air sealing, Energy Star (tier II or III) Windows and Doors, LED lighting,    Since we are buy-n-hold types, if we sacrifice anything  due to budget constraints it will be trim level - something we can easily change later.We are at the painting stage of a full-gut, deep energy retrofit of a 1100 ft^2, 2-story attached unit {fire coded common wall} and are heating the entire unit with one 2000W electric baseboard at the moment (heat pump will not be commissioned until trim is complete).

I have been using this strategy for the last year and I'm still at the stage where I'm building up my cash value.  

I can even arrange for a house to be furnished, help you with selecting a property management company, insurance, everything else you can think of to make it a great investment property for short term or long term rentals.

In smaller properties (2-6 units) with common laundry, you typically find 1 laundry pair for every 2-3 units - a lower ratio and tenant complain about machine availability, rather than arrange a schedule with their neighbours.  

As a Realtor and former analyst, I'm putting my experience and research skills to use looking for the right property as well as sorting out the early stages of funding my/our first project. 

I wanted to hear from other people who have done similar arrangements.

No prior contract arrangements were made detailing profit split.What do you think would be fair profit split for this situation?

I thought the guy was going to jump off the stage and slap the lady for not following instructions.

The payroll would be safer, the rental arrangement may have issues, if the rents paid from sales commissions became excessive for the value of the space rented, it would become clear that you were circumventing the law!

Then I told her that if I was able to find a good deal we could arrange a joint venture.