One thing they had a penalty of "$100 per diem" if the contract falls out because of failure to finance.

The cost starts with  1.) plan cost (survey, civil engineer, site plan, architect, structural engineer, mechanical/electrical/plumbing (short for MEP) plans, etc.).

Failure to have funds for maintenance results in maintenance not being done and that leads to problems like structural issues.

@Sharma Parth  With your total cost ceiling of $120K, paired with the objective of completing a BRRRR you are setting yourself up for failure.

This week I received my first negative review from a guest.I understand that this is part of the business, but I'm just wondering what coping mechanisms does everyone revert to when this happens?

What downpayment % does your finance mechanism require?

I am worried I won't be able to get ahold of him, should their be a failure in his workmanship.

Nothing inherently wrong with either, but something to be clear on before investing money, since the controllable successes or failures of a property are going to come down to who is actually putting the deal together and who is running it.I would also be certain how the capital is flowing from deal, through primary sponsor, and down to you, the Spark Rental investor.  

One of our tenants had a higher water bill due to the leak that has happened because of water heater failure.

And would that be the architect or mechanical/designers?