@Kathryn SchauerThere are many products that can be used as moisture barriers; non-permeable coating like SealKrete, rubber barrier product like a house wrap, etc.

If it went to the subfloor - mop with bleach mixture, let dry; roll on two coats of Kilz and one coat of clear sealer. 

No sane lender would lend you a penny on this deal and it would be an very bad idea to use your own money on that thin of a margin.

I've been saving my pennies because I know I want to invest in income producing properties but not sure ow to determine where to buy.

Start depositing every penny into one account.

He did not want one penny from me and he never charged for his services.

For most of the homes the carpets alone were $3200 to $4900 plus two coats of paint on every wall and ceiling, replacing broken bathroom sinks, kitchen sinks, faucets, repairing air conditioners, replacing cracked times on roof 36 feet high, bringing in 4 to 8 tons of rocks to make the yards look nice, trimming trees, repairing sprinkler systems and the piping, replacing refrigerators, stoves, washing machines clothes dryers, water heaters, painting garage floors ceilings and walls, bringing in 20-yard trash bins to remove all the carpets, trees trimmings and trash left by tenants, replacing all the window blinds, door knobs that are broken and locks for the main door and locks for the garage door so the keys match, repairing garage door openers that are broke, repairing the garage door rollers and seals, painting the trim outside the house, replacing facia boards that are 36 feet high, replacing window screens and the screens on sliding doors, replacing entire windows just because tenants broke the window locks and they cannot be repaired, replacing kitchen counter tops that are destroyed, replacing all the kitchen doors and drawers because tenants destroyer the cabinets by hanging their wet laundry in the kitchen cabinet doors to dry. replacing garbage disposers, dishwashers and the list goes on and on.

Appreciation is crazy, that 40k will be a penny's drop in the future.

If you want a good contractor you can't be penny pinching or you're going to end up with a guy who sold the job too cheap and is jumping from job to job kiting along the 50% deposits until they're all burned out and your project is 6 months behind schedule. 

They can essentially move in, live there several months and never pay a penny by doing that.