Your post neither provides valuable or additional information nor did you post direct questions like the rest of us do.    

If something happened to me, I wanted my wife and kids cared for.

Additionally, I expect applicants to follow instructions in the advertisement and application, to make and keep appointments, to show up on time for appointments, dress and behave appropriately at appointments, and in general demonstrate throughout the process that they are someone that is easy and pleasant to do business with.

Additionally, you want to start building your "Core 4": agent, GC, lender, and PM. 

Either way it would be a grey area, selling a house with a different amount of units/bedroom/bathroom seems extreme though. its an auction site, I have seen auction sites miss the fact there was additional lots in a sale.

Additionally, do you have any other ideas or strategies that might help achieve his goals without incurring a tax liability?

In hindsight I probably should have gotten an additional HVAC-specific inspection and tested the measurements for the actual washer/dryer space.

In addition, all Rent payments hereunder not made within five (5) days of the due date shall bear interest at the rate of one and one-half percent (1-1/2%) per month"The monthly rent is $1550 so the late fee is easy - I've set the account to charge 5% if the rent isn't received within the 10 days stated ($77.50).

Your primary strategy should be to have the Contractor and all Subcontractors add you to their insurance policy as Additional Insured. 

In addition, condos tend to not appreciate as fast in value compared to single-family or multi-family homes.