While insurance might cover the reconstruction of your property, the community's recovery could take years or, in some cases, never occur.

However, a surprise occurred with title that drove up our acquisition cost to almost $120k.

Sometimes (rarely), people will accidentally get shot in the crossfire between gangs like a few days ago in Tulum but that type of incident occur pretty much everywhere but you just don't hear about it.

Marie Johnson - please see this link where what you proposed in your post seemed to occur for somebody:http://www.patheos.com/blogs/slacktivist/2012/11/13/rolling-jubilee-proclaim-liberty-throughout-all-the-land/

Then to be safe, I like to add 10% to it as a buffer when/if cost overruns occur.

They can change terms basically at anytime before closing for non-owner occupied - is it good for the reputation - absolutely not - but it does occur.

So right now is a chance to nicely position yourself when this occurs. 

I'm paid fairly quickly, at the time the assignment occurs.- go through all the above motions, but this time I don't assign the lease and option to the tenant-buyer.

OR Talk with a property management team that specializes in Padsplit / Co-living and they can give you some more realistic numbers to go with when it comes to occurancy % and cost!

Especially if you haven't went into detail about how you want things to occur and what the project schedule is.