It's 7.1%, just as illustrated here.You do a lot of questioning about the commission structure, IRR of the policy, etc. but you don't seem to really understand how this particular policy design works.

Ok,I'm a little devil and tempted to say " That's there problem,not yours".However,unless you are not going to have the property appraised before the closing (I severely doubt that),she is gonna find out anyway and demand a higher price or tell you to get lost.Be the helpful person and suggest it is going to appraise much higher and show her the comps for a home in her area and physical condition.

Is there a preferred way to structure a deal like this?

Since our relocation to middle TN, I have been busy sorting several things and I am just unpacking my office boxes - I will add a few more recent deals of varying types and structures and if I still have them, maybe some pics.

Looking for someone who is very knowledgeable in aspects of real estate, taxation for various corporate structures, rental properties etc (if they don't know the tax law on short term rents and the tax advantages associated with them then in my eyes they are not qualified).

I see a lot of posts about being cash flow positive, but no details were given on the deal structure.

Sure, these things may be greatly reduced by how the contract is structured.

He recommended 5/8th drywall since it will help the structure...

Its structure, plumbing, electric systems are sound.

If they don't adhere to the deal they signed off on we have the right to physically remove them.