That was a really helpful response.REI can seem overwhelming because there are so many interrelated variables that can be manipulated in different ways.  

The amount of money you make is determined by the commission percentage that you negotiate with your seller.

Really hard to know if that is a good price, because there are so many variables that are going to be location specific.  

This is a whole lot of money to spend just to pull out about $50k.I have some private money loans I would like to extinguish and I have other opportunities that I would like to pursue, which is the motivation for releveraging.In the alternative, if I wait a few months I can get an 8% 10yr HEL (fixed) or a 6% 25yr HELOC (variable) from another local bank with no closing costs.Am I pursuing a bad deal?

There are so many variables and market changes etc. in real estate that if you are pursuing some panacea in real estate proficiency, I doubt you will ever start investing. 

There are a lot of variables, including state and local law and whether or not the occupant is really the borrower or a bona fide tenant (or family member of the borrower).

I couldn't agree with @Amit M. more about the variable rate financing aspect, along with the differences in vacancy, especially if you have a single-tenant building, large single space, or unique building.

Not the buyer and the percentage it costs them. 6% commissions plus paying closing fee's adds up on a $400,000 home. 

Brandon, nothing more that an asking price is needed and that could be listed as "Make Offer".You never use a pro forma provided by a seller or listing agent other than to see what fixed and variable costs by item are involved, then you begin to verify the numbers to see what they lied about. 

Remember, the seller has an agreement with the realtor to pay them a certain percentage for commission.