Is it standard to pay a fee or a % on profit of the project or both? 

It is now worth more, in this case, so if you buy the property today on the MLS you pay today's price and get 7.75% interest on a 30 year loan.

I was forced to cash out my 401k in payments to minimize tax penalties, using it to complete house projects and pay off some debt.

First of all, a tenant who pays on time is a blessing and an asset.

My goal is to save on my living expenses and pay less than I am renting right now (my fiance and I pay $1,450 and split it). 

Any pointers on how should I run numbers to compare two cases.Case 1:  Rent home A, Buy Home B @7.5%, with potential refinance at 3.5-4% ( ifff thats feasible ) after 2 years, once the rates are down. ( i know high hopes , but I dont think 7.5% is the new normal ).Case 2: Sell the home, get equity out, pay the whole equity ( dont know if thats wise ) towards downpayment of home B, reducing loan amount to approx 320k. 

The leaseback will be $5500/mo… I’m estimating the mortgage around $4700 and they are paying the hoa’s while they’re in.

There are different kinds of funds, including dividend-paying real estate investment funds, which are similar to mutual funds.

I need to pay off my lawyer fees before all the houses sell and qualify for these properties.

If you plan on only paying a portion of the private note off at refinance, you will want to make sure you do not record the note on title.