, perhaps your wall colors are offensive, perhaps the lot is not shaped well, etc.

Yes you have to look at your state laws.There was a case I read the other day where someone working as a city official in Georgia put some kind of land deal together and asked for a 3% fee for services and it was paid to them.This person was convicted of a misdemeanor offense and was ordered to pay damages.It really depends on INTENT and how many times you have been warned of not doing an action but still did it.

Mike Berlay No offense to those who live there but be ready for the major culture shock when leaving NYC or any big major metropolitan city for a more rural area.

No offense, but you have analysis paralysis.  

Fraudulent statements on loan docs is a federal offense.

Claiming it's the tenants problem due to Mother Nature seems like kind of a jerk move (no offense).

(to become a nuisance property it can only take 1 time for the cops to stop by your property for it to become a "nuisance"...depending on the offense)

Background checks should include both criminal offenses and any eviction history.You should also make sure to check for rental references and make sure to verify their income.

Unfortunately, it's appears you found a scammer.I'd be very skeptical of any out of town lender, willing to loan to someone with no experience (no offense), and asking for up front fees.

No offense meant toward architect's fees, LOL.Major Rehabs are rather rare in residential, but there is a thread that might interest you, has "Pop Top" in the title, if you search that you'll find it.