If the drywaller routes around these ears the switch/outlet will have to be pulled flush against the box, which may or may not be flush with the surface of the drywall. 

It does not sound on the surface as if that is the case.  

One of the main issues is trading deeds, the deeds are effective when executed, not filed, I understand that one deed may not surface but they could, and the arrangement also circumvents state foreclosure law and rights of redemption.You're absolutely right about an escrow agent filing an interpleader, some simply refuse to perform unless the parties agree and have required the parties to get the direction of the court, this goes on with sale contracts and deposits more often requiring both parties or one to provide a release.

It's great to be able to purchase a 50 unit for $2.5M, but what are you going to do on day 2, when the day to day management/operating expenses begin to surface?

looks like a pretty good deal on the surface.  

We measure for tile and other surfaces and buy precisely, so if we come up short it's a time to say 'hmmm'.I guess some argument could be made that a contractor might want to steal something smaller, like a bucket of mud or nails or something - but honestly, the guy who did it would have to be really daft to risk future work over a bucket of fasteners.And a lot of this boils down to knowing who you're working with.

Is it common there to put hard surfaces in bedrooms?

I'm not stuck on this specific property, just seemed like a good value on the surface.

First for cash flow to help promote future purchases.The FHA Loan is certainly appealing on the surface - but I will have to do some more digging.

Fill the gap with wax and level the wax from flange out over the surface of the flooring so there is nowhere for water to go but onto surface of flooring should a leak develop.