There are multiple points of failure here.On your rehab, if you haven't been asked for a draw then he hasn't done the work.

You would be wise to spend time learning them so you understand what your responsibilities are and how to protect yourself. https://justicecourts.maricopa.gov/media/vd1pcl32/info-llt-e...Start the eviction process immediately for failure to pay September rent.

If the idea is to save money by "being your own GC" this is a recipe for failure. 

. $30K should be more than enough for fresh paint and flooring and some other odds and ends, but if you need dry wall, cabinets, countertops, mechanicals etc it could get much pricier. 

4- of course we'd want to verify it's permitted use per zoning5- Capex will need to be budgeted for a reserve account for tax purposes6- need to get the stage 1 and 2. 7- by subcontractor issues do you mean a mechanics lean on the property?

2) Are Vendor Mechanic's Liens extinguished at tax sale? 

Gritty students succeed, and failure strengthens grit like no other crucible.”― Jessica Lahey

Rather than take a complete loss on the uncollectable debt, can I take the assigned debt, make collection efforts and upon failure to collect declare the loss to offset the capital gains?

Closeups of all mechanicals (hot water heater, furnace, etc.)

The mechanics of it.