Yes, fulfill your end of the agreement.

From my understanding if the tenant does not fulfill the agreements in the contract then you can withhold the security deposit. 

If it’s the right relationship, that year compared to a life long foundation for financial freedom means nothing.

Since contract for deed (when done properly) does not get recorded, nor does a deed get transferred to the purchaser until the contract is fulfilled, you will not have to "foreclose".You will, however probably have to do an 'ejectment' (in simple terms a more complicated eviction) if the purchaser will not voluntarily move out.  

After you fulfill the occupancy requirement.

Wealth growth is a life long venture.

With a land contract the buyer agrees to fulfill certain obligations (like pay a certain amount of money) by a certain date before the seller will transfer title to them.

Condo fulfills several criteria1. cheap within the price range with no mortgage2.Easy to manage3.

My question is about 1031 exchange.Since we purchased as FHA owner occupy, we must reside in this residence for 2 of the next 5 years to fulfill our lender requirements.

It's definitely fair to pay for materials up front, because that will probably be an up front cost to his company as well, but I'd suggest withholding a fair amount of the payment until the job is done.Anytime any sort of contractor and owner set up a contract each side has leverage on the other to make sure the other side fulfills the contract on their end.