Do you know move out fees are typical in Chicago?

One finished, I calculate it would be worth 1.2 M at a 8% cap rate, which is typical for the area. 

Typically, a Buyer will go directly to the Seller's agent hoping that since he/she is going through the same agent, he/she (the Buyer) will receive some type of discount since the Seller is saving on commission.

This is the typical 'value-add' scenario. 

There's no hard and fast rule for how long you need to hold a prop before you 1031, but most people use the one-year-and-one-day rule to minimize IRS scrutiny.There are rules and timelines to adhere to, yet another reason a QI is so crucial.

Typical upfront fees would consist of Appraisal or BPO fee (3rd party charge) and maybe a document  deposit, after final approval is issued, to ensure that in the event of a last minute cancellation by borrower, legal fees are paid. 

Curious as to what a reasonable percentage down would I need? I don't have steady income so I can't rely on my work to get the rest of the loan. As in, I'll need a commercial loan, based on the current rent of the pro...

CMBS typically looks for 5 million and up.Mark

Not a typical scam where they take your money and run away but one where the value you get is significantly less than the price you pay

I typically don't include this in my closing costs, when calculating it, however, since these are not real expenses - you will get this money back eventually.You may want to add a property inspection fee and an appraisal fee to your total.