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

The buyer can walk away with simply losing his option fee or he can choose to exercise the option.Options are like Ice Cream, there are at least 37 variations.

Instead of just wholesaling, clean it up and maybe make it livable, sell for more than just a wholesale fee.

Investors often call this a cash-out refinance, but a closer look at the guidelines shows you cannot get more than you invested in cash or funds that were "seasoned for two months" as your money, you cannot use a value higher than the lower of the original purchase price or appraised value whichever is lower, and you must use the cash out LTVs which are 5% lower than purchase LTVs.  

Low entry fee and 3% Interest Rate How did you find this deal and how did you negotiate it?

In my case, I'm following all the rules of a rental property, along with taxes and fees, but I am giving them a slight discount.  

The goal is for each of us to retain ownership of the completed buildings, though we're undecided on the ownership split.Appreciate any advice or recommendations you can offer. give a value to everything. your deferred GC fee which even if you do it for 5% markup I would so you earn something and aren't hoping something happens down the road.

It took about 4 weeks, but had few fees.

As Stuart mentioned here, if the use has not been continued for 3 years and the previous owner didn't have a rental license for more than 3 years they can revert the use back to the buildings original use or deny it for 3 family. 

So the alternative would be stepping out of my comfort zone and buying in another market where, theoretically I can get the same returns on an already built property including management fees.