There is a basement, however, unfortunately, it is a finished basement, meaning I would have to remove a good portion of the ceiling drywall to get at it...

Does the commercial tenant pay any portion of parking area sealing or common area maintenance?  

I would probably try and use my portions of those profits to invest in more buy and hold properties.I know I probably missed some details but as a rough plan does it sound plausable?

Anyone have any experience recouping portion of cost from contractors for this type of thing?

Short term you can possibly find a MF that will cash flow or pay major portion of your PITI (principal, interest, taxes and insurance) however, to find a MF that will cash flow in todays market you will most likely have to find a property in area that may not have good schools, safety concern, proximity etc. these factors will come in to play in the long term.

In most purchase/lease options both the down payment and a portion of the payment would be able to be utilized as the down payment.

I'm not really sure what the 60 day subject to financing is - If you're referring to having a contract with a financing contingency, these aren't abnormal, but a large portion of sales in Las Vegas right now are all cash deals.

In my opinion a decent rate to expect is 4.5-5.5% on a conventional and for the hard money portion- 9.99-14%. 

I plan to take a set portion of my income from each check and put it into an investment account.

Basically a portion of condo corps aren't holding enough money in their reserve funds to cover the long term maintenance on the buildings.