GC sat on the job waiting for more funds to pay their contractors and tried to strongarm me for more money.

If you are paying what is owed, you don't go through this, it's a new loan and a payoff.Why?

It's better to pay more, knowing you have something secured versus cheaping out and not even closing. 

Hi Catherine,Welcome a board to Bigger Pockets, it's a great place to learn and Network with like minded investors. 

No one in their right mind is going to file a lawsuit over 2k.. they may and should just take you to small claims and or as Greg stated file their lien and wait.Also work done to YOUR satisfaction is a pretty weak argument and totally subjective.

All that said, and to answer your question, I think a guaranteed check for 66% of the rent offers some peace of mind and limits potential loss. 

By getting involved in the community and building relationships with long-term residents, you’ll stay top-of-mind for distressed sellers.I hope this helps!

Thanks for the advice—definitely keeping those points in mind as I search for the right deal.

You're paying rent, but it's an investment that will pay handsomely down the road.

New Jersey is a great place to invest especially if you are open minded to the idea of house hacking.