On the note of topics and code, depending on when the house was built if you replace the dry wall you lose grandfather status and will be required to update both the plumbing and electrical to modern standards.

Is losing $300/mo OK, considering limitations of such low downpayment?

In today's market, if you drag your feet you'll lose.

It never works and then you lose trust.

I've seen many bidders buy the 2nd and 3rd positions on a property and lose every penny.I also sold properties where I foreclosed on my buyer and I remember there was protections in place where I could not sell the property to someone without notifying the auction.

Asset protection - You have insurance, a mortgage and you can add an umbrella policy if your losing sleep over this to give you 3 layers of protection with no need for an LLC.Tax Advantage - There is no tax advantage with an LLC.

You come to your doctor and say: I want to lose 10 pounds.

The builder is losing money too.Unfortunately, all you can do is check in with your realtor and the builder and ask for updates. 

However, if nothing is in bad condition you may lose money on the reno.

I don't want to lose per diem or BAH over some technicality I overlooked.So I think, long story short, I need to run all my number correctly to take everything into account.