I pay them the 1st months' rent to find a quality tenant to put into the house. 

The house is laid out the same as you explained as well as there are records of the home previously being a multifamily.

Under the current system the commissions are just rolled into the price.The problem will be when an independent buyer wants to see a house but won’t sign a buyer’s agent contract because he doesn’t need an agent.  

I have a question in regards to gift or equity.My parents have a house they wanna get out of a payment. 

Houses are sitting.

My question is around requiring other occupants of the house who are not paying the rent to fill out an application.

We over improved our first 2 houses because we thought every little thing had to be perfect.

The idea being that if you just sign a sales contract that states "I will sell you my house in the next 30 days" it is unenforceable because there is no "consideration" cited in the contract making it unenforceable.

The upside is I can manage the renovation much easier, and for my first reno, it will be much easier to have a local property. 

That is after all expenses: Vacancy, repairs, Management, evictions, Lawyers, Accountants, the list goes on and on.