I am working on a few deals in three separate markets where the federal government has selected my client's bid to lease their building and was trying to find my client a lender who would provide 100% Loan to cost for the deal.

They were also able to provide new estimates on the work needing to be done including correcting everything the original contractor had done.My question is, should I pursue some sort of legal action or just never get into contact with said contractor again?

However, if this cash out refinance is necessary to do your next investment and the investment provides superior return than the higher cash flow you are currently receiving, it's worth doing it.

I am in the middle of buying two rental properties in AL with a turnkey provider. 

My expertise is in international financing, so I can provide guidance if you need assistance.

I also look in the newspaper and craigslist for basic for rent ads that provide landline phone numbers.Facechat, instabook and the others mean nada to these folks.

Once you locate an area, dig into the average nightly rate, create a spreadsheet that calculates average occupancy (AirDNA can provide this) along with average nightly rate and begin plugging in properties & expenses in your target area to see if these align with your goals.

I'd be happy to provide a revenue projection as a short term rental if you'd be interested.

I'd also highly recommend getting an appraisal or at least having your real estate agent provide a BPO prior to negotiating with any "investors". 

I've flipped a few properties and have decided its tike to dive into new construction providing the market stays strong.