This person has 8 months remaining on their lease.

Don't spend time looking for something that doesn't exist. also in the US you cannot sue the police.. unless its a direct assault on your person. your wasting your time.. 

Personally I never listen to what the seller states the income is as they are sometimes way off.

And does the person doing the labor get paid or only the materials paid for by the partnership?

Both offered up to $40k, 12-14% rate which is higher but not bad for an unsecured personal loan. 

With respect to paying $44k off on your HELOC, I personally think that is totally fine and a great start. 

What I personally do is I will hire a local Civil engineer who has done subdivisions in the jurisdiction and I will pay them up front for a detailed feasibility study.

Since you are out of the country and seem inexperienced, when buying condos you also have to assess the viability and strength of the HOA, pending litigation and/or assessments, and parking per unit.

I personally recommend checking Columbus OH - lots of job growth, population growth, and major companies moving and developing here.

As a neighbor, personally I don't care if someone smoke a little weed every now and then, but if they are smoking non stop 25 times a day, you might lose a good tenant over that.