But then spend a day in craft and antique shops nearby and buy colorful artwork, accessories, throws etc. to give the space a local vibe.

That's the only way you will know if it's legal.In a true wholesale deal you are putting the property under contract, then either assigning your contract or double closing. 

I have each of mine under a Landlord Policy, but then have an umbrella policy over my own home and the rentals; extended liability coverage.

But then comes the bombshell..."

If he feels he still has rights to the rental and the deposit, then that also means he has responsibilities for the damage and is subject to charges.

Need to put the windows and doors in, and then start the mechanical rough inside.  

The HOA can decide to do a special project or make a short 3 story elevator more hurricane proof ($800000) or have issues after a hurricane and then you are definitely not ahead of the game.Please connect with me and I can maybe point you in a better direction.

Live in the multi-family for a year, then move back into your own home and rent out the unit.If if not ideal, it's worth the hassle. 

Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.2.

Then things went south...I decided to gut the rest of the basement since it got water damaged from the foundation issue.