However, I will finally have the opportunity to visit and asses the property later this summer. 

@Rebecca Shine I’d be more annoyed by the late rent then the trash probably.

He orders that I get a structural engineering report done.  1500$ later the engineer thinks it’s fine, but in his report it recommended that  the beam could be replaced because the paint was cracking.  

Years later I stand with them and admire their investing technique and I am modifying it so that it works well for my situation.How do I define a 'Mom and Pop Investor'?

He stated that he was too busy to come by so just asked we leave the keys and he would come by at a later time/date.

But since it wasn't until 5 - or later depending on how you see it, I feel a penalty is completely justified. 

I don't mind upgrading later. 

That way you get the best loans and the best tenant pool and when you want to sell later you don't have to complete another rehab to get it to market condition. 

(which you can always do later).

We had legal agreements both as a TIC, and later, as a condo association (with association dues).