Always fix all water issues first before moving on to doing major repairs of a structural  nature.  

While that goes on, I still have to fix the damage and get it back on market but sadly now that its 9 months into the project I have spent all of my money and am in default. 

Re-read your contracts, document your correspondence (and attempts) with your builder and demand documentation to match up any payments/draws with what's actually been competed on your build.

Where as, another home (2 bedrooms) I helped with in the SW section, right by the Timken factory, was purchased for $12,000 and after about $2,000 in fixes and updates is being rented for $650. 

I just refinanced my 3.875 30 year to a 30 year fixed.

I believe the upside value is $400K once fixed up. 

Thank you all for your inputs and help...I'm a wholesaler and do fix and flip as well as rental so I'm familiar with doing my due diligence...

I have a 2.9 fixed rate.

Also, the amount of damage was so expensive to repair that he simply could not afford to fix the more damaged units.

. --- We haven't seen a S8 inspection report in over a decade that required a tenant to fix damages they obviously caused.