The 8% you mentioned is a typical fee for LTR PM.

The seller wants my side to pay for all legal fees such as drafting the mortgage and note.

Understanding how to underwrite these deals and what GP/LP and Fee structure to use is crucial. 

Through depreciation, other income taxes are offset, through debt paydown and appreciation, he's going to gain $thousands per year in equity.Subjectively, it may appear not to be a deal, but if the buyer understands these factors and wants the property, an entry fee under $10K sounds like a deal. 

The acquisition fee is what keeps the lights on, so to speak.And helps afford all that time & effort during/between deals.✅ If you don't agree with the sponsor acquisition fee, you must first understand that sponsors do not share in the profits (most of the time) until the sale, because of a preferred return.Fees sometimes get a negative connotation...→ You pay fees for your 401K.→ You pay fees when you buy a car.→ You pay fees when you buy a house.Would you be willing to pay a fee for an awesome investment opportunity?

Now do you think I would have any diffuculty to wholesale this deal for a $70K fee?

There seem to be hefty fees associated with that.

I spent hours reading through other DST forums and came to the conclusion that it might not be the best option for me due to the lack of control, fees, and overall risk.

So, I was able to get almost all my cash out of the deal, besides some closing costs and legal fees for the tax assessments.

If she goes the route of canceling I would hold lender liable for the EMD (I assume this was waived) and also hold them to crediting the appraisal fee too.