If you don’t, they can force you to remove the new construction and restore it back to its original state and issue fines.

Just find the right tenants and you will be fine.

That's fine, but it seems like it would overestimate costs for a high rent/higher # units property, and underestimate costs for duplexes and lower rents coming in... 

David Willis is a fine lawyer.

Some exclude short-term rentals and if that's in the fine print and your home burns or is damaged in a storm, it's not covered because you acted outside the policy limitations.

So as a licensed Broker, and Expeditor with experience in dealing with investments/investors, distressed homes, and multifamily violations here in NYC I can tell you that your plan is pretty sound but the fine details of how it is executed (types of locks you use, how it is divided etc) matter here in NYC.

If you know the doors where fine when you viewed it and now they have large holes in them, then by all means charge them for it.

Those companies ALWAYS make it a big deal. 99% of mold is non-toxic and unless they are "huffing" the material, they will be just fine. 

You'll be fine.

Also, if the sponsor is new, I am fine with less skin in the game as long as it is significant to their net worth.