How about repairs ?  

Under Alabama law, that is a VERY dangerous play and you could end by losing money.You also cannot sit back and let him build the house and say "Thanks."

This works best when the seller is motivated and open to flexible terms.4.BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat)– If you find the right undervalued property, you can finance the rehab with short-term funding and then refinance into a long-term loan, pulling most or all of your money back out.5.House Hacking– If you’re open to living in your investment, you can use an FHA loan (as low as 3.5% down)to buy a multi-unit, live in one unit, and rent out the others.

We also paid for an inspection on the house & 2 appraisal fees.I called Nick to ask questions and he didn’t like the questions I was asking so called my partner and told him I needed to back off or they’d cancel the deal!

The low down payment house hack is the way to go.

Get the house hack under contract and closed first. 

It's what you paid, minus the value of the land, plus what you spent on long term repairs (roof, furnace, etc.

Congrats on your first house-hacked rental.

Who owns the house, your or the LLC?

Philip, it really depends on your county’s housing authority.