There is a lot you need to learn in order to make this strategy work and a lot of ways you can potentially stumble.

Since then, I’ve worked as a CTO and consultant, but real estate has always been a key focus.

Awesome stuff Matthew, looking forward to seeing you on here and maybe in the future we can work together. 

Even if you know the owner like a brother, you need to do your checks and balances.

That cost us 3k to fix Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I haven't seen the City crack down on unpermitted work with regards to a LTR rental license but that doesn't mean it won't be an issue some day.

I, and the investors that I work with find the advantages with new construction investment properties are so great it is sometimes hard to compete. 

Another possibility is that maybe he was working remotely in another state or country and didn't want someone calling from North Carolina when he's supposed to be somewhere else.

If the landlord or their employee did the work themselves, they must include a description of the work, how long it took, and the hourly rate they charged.

Quote from @Aj Green: Quote from @Gregory Wilson: The real issue is how much of a deposit do you have to try to get back from them.Sure, your contingency might work but I assume you gave the deposit to the seller.