Unless it's extremely clear-cut that they were paid for work but did not do it at all, figuring damages is difficult.  

I am familiar with his work, families know each other the whole nine.I financed it with hard money, front loaded the construction contract (So we could get ahead concerning draws) and spotted contractor 15k out of pocket to get through soft cost and get the project rolling.

questions about some concerns I have when it comes to getting an offer from a wholesaler.

I have a really good attorney who I use in PDX that wont charge you an arm and a legg and scare you into all sorts of unnecessary and complicated asset protection schemes.. basically you can vest in LLC  have an operating agreement ( that's your JV agreement) and a clear cut buy sell agreement .. pretty simple and standard stuff.. feel free to ping me off line..

Many other states offer these types of plans through your gas/energy company so you should look into that if you are concerned about AC unit being old and not wanting to proactively replace.

Today he visited the planning commission and while they agreed it's a commercial property (he would live on the top floor and run a store in the bottom half), the person he spoke with at the office said there's a concern that there's not enough parking.

This change alone stands to gain me $150k+ in equity due to the increase in NOI.My concern is that firing this PM may prove complicated due to his status as a tenant.

I would be more concerned with serious crimes than little things.

My experience has been that homes cut up into units may or may not be legal in any given community.

I know the DP (dwelling protection) insurance policies are standard landlord insurance but my agent tells me I can also get a Businessowner policy to cover the property (mostly concerned with fire, wind, standard perils).