@Julie Taylor since the bank is in possession of the piece of paper that has the lein printed on it, I don't know how you could cloud that title.

Your only upfront  investment would be $1,000 Earnest money at contract......5 to 6 month build time then possession is after the house is completed and after closing.  

Give the tenants a firm date that their possessions must be removed.

We used an FHA loan so our total out of pocket to take possession of the property was in the neighborhood of $5500 including the home inspections for the total purchase price of 125,000.

Specifically, the portion that involves taking possession, securing, rehabbing, and renting?  

Hard is, I go through with an eviction, get possession, throw his stuff to the curb and file a court case and get judgement for money owed.

I often say everyone has a price but it is crucial to have an aggressive collections system that you can get someone into court early (by day 40) and then offer cash for keys once possession judgement is presented.  

If they are not served personally or show up in court, you will only get possession of the property and not any sort of money judgement.  

In addition, it is reported this generations mindset is set more towards living an experiential life as opposed to one of consumption of possessions, unlike that of the next large group of renters. 

So I guess I'm confused.....are you paying him for some labor that a contractor did to help clean things up or for damage to his possessions?