What were some mishaps along the way in terms of the contract?

As I’ve long said.

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I find it a great way to earn additional compensation as long as its a deal I like with conservative leverage and strong operators I trust. 

., short-term rental, mid-term rental)?

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He's changing the terms of the agreement, and you can choose to accept it or reject it.I don't think it's fair to pass this cost onto the tenant just because you are unwilling to stand up to the contractor.

You are still exiting with a refinance and thus the terms wouldn't change on the exit whether you are buying in cash and then refinancing versus doing a construction loan and then refinancing.

IDK pets can certainly do damage but with a decent long term tenant I tend to want to preserve the relationship.

Sub2 is a risky strategy for a long term buy and hold as the longer the deal structure stays in place, the higher the chance that issues will arise (like issues with the loan servicer, insurance, seller filing for bankruptcy, seller dying, seller realizing their DTI ratio and ability to buy their next property is negatively effected and becoming upset about it like in your case, due on sale clause being called, etc.).