My goal is a win-win situation, and it's basically for him to do owner financing and rent. 

He does excellent rehabs and stays in constant communication and explains everything in full.

I was thinking ​some type of homeowners policy, I didn't think about builders risk.You're very welcome, Stuart made an excellent point about having contractors add you as additional insured.

I know that a ton of people will win with the approach you are contemplating taking - in taking a HELOC out for the down payment on an investment property. 

and do you know if they came back to the states.. that will be a HUGE win for anyone who is litigating against them .. at least right up until they file BK.

Some will assist with down payments or closing costs and only require you watch some videos to become a better informed buyer, so win-win.

@Carrie Lane you'd have to prove the PMC directed the pest company to add the screens.Otherwise, you'd have to go after the pest company.Not sure what you would actually win to make it cost effective.

Both the daughter and Dad have excellent credit history but feel this is a red flag. 

Just make sure your PM has excellent accounting practices in place as trust accounting can get out of control fast.

It first appraised for $330k which I challenged as I had better comps, but it's rare to win one.