What I don't understand about your logic is why someone is unethical if they wholesale a property for a large profit but if they buy it and then sell it, they become ethical?

An 8% preferred is nice, but upon sale if the sponsor is taking 50% of the profits, plus they get 2% acquisition fee, 2% disposition fee 1% management fee and half of the profits your IRR will be lower.  

it would need to be about 60/sq ft to make a good profit.

But if I make money from real estate, this hobby will be fine if it's not profitable. 

This would give me a big equity bump, allow for larger cash flow opportunity (renting a 4 bed/2 bath in place of a 2 bed/1 bath), and I could avoid most of the headache involved with a rezone. 

If we're talking about profit, that's like 1k per year not including equity and that's not worth it to me even as a landlord with no responsibilities.

That's a pretty decent profit. 

@Eli M.There are quite a few non-profits in Philadelphia that assist low-income (or other specific classes) population with first moth rent + downpayment.

Also interested in any suggestions that, I and others could benefit from, regarding floor plan adjustments that others have done that you have found profitable/marketable and cost effective as well as total disaster stories on what not to do.

*raises hand* ;-)The average flip in the area is going to have a profit of $15-30k.