You may be misunderstanding how the numbers are going to work.I think the best scenario would be to get a construction loan to fix up the other side, and then move into it.  

Yes, but it's what many flippers will do.You already suspect what you're going to get along with his low price, tons of drama, tons of your time supervising, negotiating, ending in arguments, misunderstandings and your return here to post about the nightmare you're going through.You want proof of insurance GL/WC, references and a price that you believe allows the contractor to make a profit and want to finish your job instead of walking out on you. 

Don't misunderstand, I'm not saying this amount the damage is insignificant to you.  

One time I walked into an MLS property and my first reaction was that the local market is stupid, this thing is so underpriced people are misunderstanding the potential.

@Ian Ippolito Unfortunately, you are misunderstanding our model, but I'm happy to clear it up for you. 

However, you may misunderstand my points.

It is funny how when things are presented on BP we all jump in and accuse the broker of mis deeds when in fact it could be a simple misunderstanding of the buyer...  

(after a few angry emails) But my question really is, by PM saying this so early on, could misunderstandings with tenant continue?

If I'm wrong here or misunderstanding things, please by all means set me straight.

The reason we have not mention anything to them is in the past there has seems to be a misunderstanding for us being nice for having a get together with friends and family all our treat verses being showy.