This could get you 6-8 units if you shop patiently which is a great starting point.Please do not send any money off to companies that advertise real estate "syndications" online.

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?

I'd like to check into using a property management company for my first property, then I'll add it to my second.

I have some great resources about the investing in this area, which can be found on my BP Company Profile page. 

I have another friend who is expanding into the STR business with in KC (He owns the territory for the company he bought in to...right now he is just in STL)Happy to give you his info as well

If it's within an HOA, call the HOA's property management company and ask them if they know any of the history of the lot and if they see any constraints to building it and what steps it would take with them to build on it in conformance with their CC&R's.

@Alyssa TeepenThe title company would write you a check or wire the cash out (less the closing costs) into a bank account of your choosing.

As others have mentioned (besides the essentials like rates, mortgage, and maintenance), it's important to consider utilities, insurance, property management fees, taxes, furnishing, marketing, and legal requirements.

There's also potentially some liability protections you can have in place by having the work done by the GC rather than you as individuals (discussion for your legal team). 

Thanks for the info on the two management companies, I'll definitely look them up.