From my understanding, wholesaling is one of the easier ways to rack up some cash without putting any of your own money in, in certain circumstances.

Is this reasonable considering the circumstances?

Under normal circumstances, I would of course go for a fixed 3.625%, especially now as rates go up and stuck. 

My goal is to begin understanding what a sound partnership looks like and how to execute/structure depending on the circumstances.

You might qualify for an exclusion of capital gain, depending on the circumstances.

Use of permits is not strongly enforced by the city of Chicago, and, except in special circumstances, buyers will not request proof of them when purchasing a home.Additionally, you can check to see what the zoning is on the city zoning map https://gisapps.chicago.gov/Zo...

They can be sold if there is a change of circumstances which demands cash.I talked my spouse into real estate investing.

I have networked with many investors and the horror story they lived because the tenants are not happy for whatever circumstances...is a real thing.

No one, flipper or otherwise, would buy under such circumstances otherwise.

In fact, the biggest winner in these circumstances is your "AirBnB tenant" who is probably growing their profit margin because their biggest expense is locked and under market.