Sorry for the misunderstanding, I was tired.

Insurance also doesn’t protect you from misunderstandings, especially those made in writing and email.

Would you agree, or did I misunderstand somehow?

Maybe I  misunderstand.

Don't misunderstand, he didn't botch-up the job, but unless you can make invisible repairs and and lyour painting skills match that of a professional, stick to clean-up, carpet removal, maybe some demolition.I would also suggest that any bids you receive for remodeling/restoration work be carefully scrutinized, you get what you pay for!

I know they have taken on properties that were about to start an eviction, but after a conversation with the tenant realized there was a misunderstanding and the tenant gets paid on the 20th of every month etc.

They're misunderstandings or mistakes that expose the person to liability, or often, cases that insurance declines to cover. 

Don't misunderstand, I know that real estate investing is going to require hard work and dedication in order to be successful.  

Unless I misunderstanding the question, based on your example of 75% LTV, you would need to bring the remaining 25% ($48,000) to closing.

I think both investor and contractor contributed to a substantial misunderstanding of how each thought the relationship was going to work.The guy isn't a tool or a jerk.