If I verify this as correct, and plumber's work failed, how can I approach getting my expenses for this damage covered by them.If it is not the plumber's work does anyone have tips on getting my insurance to cover it?

Please verify with your CPA.

Goes without saying, but make sure the occupant gets paid ONLY after they are 100% out, the locks have been changed and the condition of the property has been verified.

From a purchase loan perspective, with any conforming mortgage you are not going to be allowed to have your down payment be anything but guaranteed funds that are verified as yours or a gift from a family member.In other words, in order for this to legally work your parents would need to give you the funds required and a signed note saying they are not expecting repayment of the funds and that it is a gift.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Personally I would say that draws to the contractor are paid by you to the contractor when the work is verified to be complete. 

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Hello,I would like to know how to verify if a home inspector is licensed.Thank you.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?