It's a 3 bed/1 bath approx. 1,768 sq. ft.  

The house is a 1960's era split level with 3 beds and 2 full baths, however there was no existing master bedroom.  

That will give you a much better picture of return for your efforts and allow you to compare just how much the $6k difference will make.Comments regarding paying full retail, keep in mind that J Scott is more of a flipper and his comments were likely based on that judging from his post, in a buy and hold scenario, often times, paying full or over retail will likely not get you cash flow which is why it is so important, particularly in this competitive market, to get a good deal and buy under market to achieve the cash flow returns worth the efforts.

I suspect you're using this technique to wholesale retail property to folks with crappy credit.It's not a bad idea if you can make it work.

Or, are you looking for turnkey retail properties?)

We went into retail/office commercial after about 5 years in SFH rentals.

Being licensed plays a key role when dealing mostly with the retail market for buyers and sellers. 

A 3 bed house is always a higher value than a 2...and would rent higher too, in most areas.  

And to the topic of unaccredited vs. accredited, unfortunately those working within the federal regulations are accepting only accredited investors, whereas those who are going intrastate are able to take retail investors from within the state that their projects are located.

Only thing I see would be retail but what is interesting is if they have so much equity why have they not listed it for sale with a Realtor?