I suspect he damaged the pan while removing the drain, but it's hard to prove.I would hire another plumber to investigate and see if they can find evidence of damage caused by the first plumber.

The building might never be a total loss but you very well could have a liability claim big enough for the insurer to investigate that.  

Crazy because I followed their exact formula and they wouldn’t even investigate rehab amount or anything.

AND rush you into decision leaving very little time for you to investigate the risk involved with this request.My VOTE, proceed with caution.

Following is an answer from IRS to the question:https://www.irs.gov/pub/irs-wd/0721013.pdfIn summary, it is an adjustment to the purchase price of the home and generally is not includible in agross income.

Contact a realtor or mortgage broker to find properties, negotiate conditions, and investigate financing alternatives.

I always recommend for my clients to investigate and interview different professionals for all their real estate needs. 

I'm not sure how that plays out with a ROBS... but would investigate it.Randy

Investigate insurance early.

Because people fall in love with returns and do not ask how is that possible…Of course investigation is ongoing but this is all alleged.https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26076