Ensure the state provides a clear title upon sale.

Unless you have a clause in the purchase of the entity that clearly makes you responsible for the entity from the day that you buy it(Indemnification) I wouldn't bother with the LLC.Good luck man. all the best!

Now, we are 11 weeks into an 8 week job and he has abandoned the job with 75% of the money and only 50% of the work done. 

Learn as much as you an about how to scope a property and estimate the investment. $50k sounds like a lot to you but with the price of materials and of qualified labor, it does not go too far.

You don't see any actual receipts for materials or invoices from contractors they hired.

I would also add, a contractor that you can buy materials for and they know how to put them in with little to know direction (reduces the management time of the project).

I am of the opinion that you'd be better served using that money toward the down payment on a property.

One is the cash downpayment and one is the work.

The Capitol region, NJ, and CT are solid choices.

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