What you have effectively done is ruined your returns on the other properties in order to purchase a deadbeat.I understand the point of your original post was not to get into this part of it, but I caution you on your approach to investments.

One guy doesn't get his stuff done on time or under budget and what one does effects the entire project.I've seen money break up families, it can certainly break up friendships much less partnerships.I'd suggest, if you have other irons in the fire that you might consider staying out of the way in rehabs, take care of the business side.

Land use (mixed commercial/residential) - ARV. 125k to 132k - home built 1910 (2 story bungalo style, split level) Can someone explain to me a transactional funding?

Much more cost effective that way and like others have mentioned on this thread- people don't expect a bathroom on the upper floor of a bungalow around here.

Then revisit the parking issue later, and what effect would turning a conventional financed property, into a 6 unit have on the mortgage?

There's a great deal of risk in this type of transaction.

If so effective rent can be lower than gross rent.

Everyone is blaming the new laws that went into effect in early Jan.

@Wayne Woodson I don't think he means he's going to give the money directly to the agent.I could be wrong but I believe the question is what percentage should be paid to the Realtor for assistance win the transaction.

Depending on what you are looking for, I may have a very cost effective option to point you to.