It is surrounded by a cabinet shop on the left side, a couple commercial buildings in the back alley that are used primarily as storage for various businesses and a bar on the right side.

If you cannot complete this particular deal, don't fret too much.

It's my first rental property completely rehabbed with new everything!  

If they do, then to close on time you and the seller are very quickly going to have to agree to whatever the lender wants in exchange for being willing to doing an escrow holdback at all, which fancy language aside is basically ransom money in an amount greater than the estimated completion cost, to be released once it's complete (ransoms only work if the thing held ransom is worth more than the thing you want).

Because they are primarily lending against both the current value of the distressed property and the potential ARV (After Repair Value).

We did not hire a contractor for the work, we worked with subs/crews that would come in and help us complete each job. 

The contractor completed work at 2 properties owned by the same owner, which was managed by the PM company at the time.

Financially, I'm not completely broke, but lets just say that I'm not swimming in money (yet) neither. 

I have another PM lined up if he doesn't want the gig.Once the kitchen, wood floor refinishing, and interior paining are done, this house will have been completely renovated.

The high level of risk could easily wipe you out completely.