A roof, HVAC, and foundation on a $80k house cost the same as a roof on a 250k house (assuming a similar size but better location) with a similar PITI to rent spread.

You could setup something where the fees are deferred until you secure the construction loan and then pay them 1.5-2x their standard fee if they waited the 6-18 months to get paid.

These hotels are almost all ideally located right on the strip, and loaded with amenities like room service, restaurants, bars, and casinos. 

Do nothing...the tenant isn't renting that area and has no right to dictate how you use it as long as it poses no security/safety risk to them. 

Sometimes it’s the smartest move to gain liquidity and to secure your position with your remaining properties.

@Joe BellevilleTo build a successful multifamily property portfolio in Grand Rapids, set criteria for property type, location, and budget, build a team, analyze deals using the 1% rule, leverage house hacking, leverage local knowledge, prepare for tenant management, network, and focus on long-term goals.

That's not really a full story so it's hard to say, but generally, if you don't feel secure or confident in the person you hired, you shouldn't have hired them.

Visa and FinancingYou're correct that securing a mortgage might be challenging without legal status or a W2 job.

Depending on where this rental is located, you'll want to make sure you file it with the right court (Magistrate/Superior). 

We self manage from NY and FL.This location has proven to be on point.