Some brokers take the short view and sell anyone anything until the investors capital is exhausted to make a quick commission.

Realistically, you're not going to save on the buying commission, since a lot of buyers still want to be represented, and that commission needs to come from somewhere.  

We owe 85,000 so we wouldn't get more than 8k after commission.

Don't get me wrong, I believe realtors earn their commission and so should wholesalers, if they are fair in their finders fee. 

Total expences are about $15,000 for a total of $58,000Sellers commissions & closing. $7,400Return?  

I am scheduled to take my final RE test for my CALbre sales license with a "theory" that I can use the license to work my way into partnerships by offering my commissions up, considering all I want to do is learn by doing at first without trying to make or lose money.  

2) I have a base + commission (paid out yearly) W2 job where my commission is MUCH higher than my base salary.

Is this just my agent trying to make a higher commission of not wanting to write so many offers? 

That's a $2,400 commission.  40% goes to the brokerage to cover overhead, staff, office lease, advertising, supplies, licensing fees, e&o, etc.  

There's an education component to selling on installment sale that are free and clearPublication 537 from the IRS talks about installment salesUsing a private mortgage and turning your house into a cash flow stream like an annuity should be the focus of the conversationIf you rent out the house you have to deal with insurance and getting sued in case the tenant find some kind of reason to bring you to courtOwning  a private mortgage on the other hand reduces the risk of being suedMy advice to you is also compare it with a reverse mortgage which they get a lump sum but they have to surrender the house upon deathReally study reverse mortgages and understand the negatives of reverse mortgages, mostly the fees that are involvedThe eldercare population is a big market, so take a look at AARP's website and understand the basics of annuitiesThe conversation I have with free and clear houses is this"Mr. seller you've got a few optionsOne you could sell with an agent and pay the cost to sell which include real estate commission, closing costs, sellers concessions, and vacancy holding costs.