The losses would have spiraled out of control for me had I not been able to sell my second house immediately.I don't look back on my experience with any regrets since I know the risks we take playing this game. 

Even large and small businesses with intangible residual services like TV, internet, security, pest control or the local contractor with remodels in process could fall behind on payments revenue contract. 

Neither VRBO nor Airbnb are vetting guests, either.The best you can do is have some internal controls, such as minimum number of nights.

When the tide does shift, you'll be cruising on Easy Street while the others are still getting in the water, adjusting their goggles, and warming up their muscles.

You have more control of your time when working with sellers as opposed to buyers.

Single family homes are exempt from rent control when privately owned.  

He is knowledgeable but he has no control over the GP.

How much “control” are you willing to give up? 

Based on what you wrote, it sounds like your project partner lost control and got pushed over by the contractors.

They also are thinking of getting a different PM to manage it after they can gain back control but would like advice on doing so.