I’ve started both and due to the small nature of the operation the commercial lease seems overly excessive and not fully applicable.

While cash flow isn't a lot, you want to make sure you aren't losing money. 

I guess I was not quite aware of the quarterly RMLS/Sentry lock fees and ridiculous annual REALTOR and local association dues.If I decide not to pay these, what are the consequences other than losing my license?

I think with all of them, the biggest factor is making sure expectations are set correctly and that your FIL is able and willing to lose his entire investment is things go wrong.  

Would you 1031 into a new property that may well lose even more value?

It seems i have a great passion to learn more and more and never seem to lose interest.

If you can do it yourself you save on contractor costs, but you also take longer and risk losing another month rent.

 $120k coming from loans, and the remainder being my cash.In this market, the best way to lose money on a flip is to run out of money halfway through, and no capital available to you.

Anybody has a good script that I can use too talked too sellers, buyers, creative finance Approaches etc.I talked too Multiple sellers and buyers but sometimes I get stuck and forget what too say and lose my train of thought.

You will not lose the deduction.