If they have constant late payments on cell phones, credit cards, etc... and a lot of open accounts I tend to think they aren't very good with their finances.

They are only allowed to collect 10% or $1000 which ever is LESS up front. 

If that doesn't solve the issue, I'd prorate the work and pay him half a payment for half a job or 3/4 payment for 3/4 f the job whichever it is and get another contractor to finish the work.

Keep in mind that publicly marketing the property is only one of many items you would be doing here which constitutes the requirement of licensing and yes, sending an email to your buyers list with the contract is “publicly marketing a property you do not own” and as such, brokering without a license.As to your inspection contingency, a hoarder house does not constitute the need or requirement for a 30 day inspection, it is merely a mess with personal affects that need to be removed by seller prior to close of escrow or you agree to trash out at your expense (whichever you’re contract states). 

If your goal is to minimize chaos, go with whichever option allows you to include a property manager in your budget. 

Compliance with these laws inevitably relies upon whichever  city or county law enforcement and the agency responsible for zoning, construction, inspections and permitting.

So from what I read, I should be using either the fair market value at time of conversion or the cost of purchase plus addition/improvements, whichever is lower.

They will lend 70% of the after repair value or 90% loan to cost (purchase + rehab), whichever is lower. 

You can look up VA loan limits in whichever area you choose to start in.

We're talking cell phones, a big screen TV, air conditioning units, furniture, electronics, etc.