Most deals I'm seeing generate 3% cash on cash, optimistically.   

You may want to partner up with someone in your area that has done commercial property and have them put it under their name and just split the profits? 

I have a friend who profited 6 figures/year from a downtown spot targeting just that for several yeas in a row.If you're ever interested in getting into the Nashville STR market let me know!

How can I understand the profitability of a deal like this, or is this just something that I'm not going to know until it all shakes out?

Seems very do able and also profitable.

I am looking to dive in the world of real estate investing with the hopes of generating some passive income and one day becoming financially independent.

In layman’s terms, it means direct ownership in a piece of physical real estate, such as land, an office building, apartments or self-storage facilities, with the intent of making a profit.

Ohio has a small business deduction where the first 250,000 of net profit is not taxed. 

My arrangement with partnering they bring the funds to close and front the reno and I handle all the construction and sale of the property for a 50/50 split of profits, well I guess that's just not good enough for people.

On the other hand I could but a fixer upper, pay the payment on it and then hopefully sell for a small profit to help fund another deal.Thoughts?