.- Consider reimbursing the new owner: While not ideal, paying the $6k might be the most cost-effective solution to protect the contractor's license and your reputation.- Learn for future projects: This experience underscores the importance of thorough inspections, even on recently installed systems.- Check statute of limitations: Depending on your state, there might be a time limit on claims related to construction defects.As a hard money lender specializing in fix and flip deals, I've seen similar situations arise.

Sounds like this seller wants someone who will get to know him, HELP him, PROTECT him from aggressive buyers/investors. 

Contact the Federal Trade Commission and the Consumer Financial Protection Bureau. 

Since the remaining tenants have still been paying, I'm not sure that I can treat the MIA tenant as absent.Let's say the remaining tenants decide to move out (probably because they will eventually have trouble paying) and I make the refund check payable to all the tenants per the rental agreement (and to protect myself against claims from the MIA tenant), but they can't cash it because they can't reach this third roommate.Any recommendations on what to do with the money or what course of action to take?

I am looking for clean and rent ready finishes, not luxury or custom.

I personally would stay away from Yardi, unfortunately their system is outdated and their customer service is sorely lacking. 

@Sandeep JainHi Sandeep,I would consult an asset protection attorney.

Most tenants will leave because of the customer service you or your manager are NOT providing.4.

We custom build homes for customers up to 900sq ft.

Knowing more specifics about your scenario and goal, will help provide a more customize approach for you.