Finding a cheap house like that in my immediate area that doesnt need alot of rehab is slim to none.

You don't lose money by having a property manager unless you have a property that has too slim of a profit margin.

Profits will be slim.

Once designated, there is a slim to no chance to develop on it (with slim's bags packed). 

I have found inventory slim in my old territory and have therefore expanded out. 

I'd say slim and none due to minimum loan amounts.

I think the chances are slim but if he's bonded, you can recover the costs through the company that bonded him, saying the work was not finished.Also, have you tried asking him to refund the payments?

If the third floor unit is a one bedroom, you will probably never need to delead it as the likelihood of anyone with a child renting it are slim.

Overall the prices are high and there are slim pickings on good deals so it's not just you.  

They are already loosing the home so the chances are that you will recover any cost is pretty slim.