Multiple people including myself have tried to caution him of the the true costs but he's been repeatedly dismissive and has made it clear we give him motivation and he wants to prove us all wrong (whatever that means). 

I have never pulled a permit for a water heater swap, know no one that has ever pulled a permit for a water heater swap, ever seen or heard about one getting red tagged for no permit, and have never had a plumber recommend getting a permit.

It's expected and common for MTRs to have utilities included.

Be firm but fair, and don’t hesitate to ask about what’s included—like prep work and trim.

Good or if there any red flags?

Navajo White is another popular color.

A significant number of my clients are from out of state, including many from Washington State and California.

My coach suggested (and I implemented) a "must do tracker"....it's a color coded spreadsheet (I like to print multiple copies and keep them on a clipboard to stay in my sight/top of mind). 

I was thinking this might work on my property in Redding and can be adapted to a shared housing project for seniors (though I'd want rooms large enough for bed, bath and seating area)  It's my understanding that it is considered a SFR with seperated bedrooms as far as planning.

White Oak color and Walnut color are the two main ones you want to focus on, depending on the rest of the design in the house!