So if it’s 70 percent Thad 87.5k meaning my entire acquisition and rehab is covered.

The other is once he has the job locked down, he doesn't really have an incentive to fix it fast since there is no real reward at the end of it while you have to cover the carrying costs. 

Obviously, I'm not an attorney and I haven't verified this with one, but I've heard in my state you can charge a storage fee (equal to a month's rent) for holding their property, charge them whatever amount your lease says for releasing fee, and then add on whatever damages the deposit won't cover.

To keep from suffering from analysis paralysis or being stagnant.

We are actually from WP originally and I used to cover Houston in my former territory, now I have Seymour.

I am just asking them to pay for the materials and expenses I paid out of pocket to cover their failures to live up to the lease. 

Those bills are more than likely NOT covered by the loan.

Will the premium cover those?

You still need to have reserves to cover those eventual costs.  5% to 8% depending on the current condition and life expectancy.Good luck.  

I add 15% to my Rehab budget to cover potential cost over runs and delays.