He also import his own material from China and can use that in his advantage to offer lower than anyone else

If it's a FSBO, the seller is also selling themselves short as neither you nor the seller have any experience (assumption on my part based on the question you asked) dealing with foreclosures, which will have (more than likely) a material impact on the viability of your transaction.

I am running into the same issue where the agents came recommended and promote that they work with investors, but do not seem motivated to find properties or when it comes to getting details on properties and putting a deal together.

This is not a minor problem, even though several currency promoters have been claiming for years that it's "just about to be fixed".

You should pay him only for this phase and not upfront but only 60%-70% of the money mostly for material and part labor. 3) Materials: Make sure that after the bid, you understand what kind of material your contractor will use.

It starts out at 0% and we can increase this as people express interest, request materials, start asking detailed questions, or verbally commit to subscribe. 

Number one, over rehab, number two replacing things that dnt need to be and not knowing where to get deals on materials.

When replacing a kitchen and or bathroom in your property, do you use low, mid, or high grade materials?

Many contracts will include a clause that essentially says the Seller cannot make any material changes to the property before closing.

At one point the building inspector suspected that the property may have had a hazardous material underneath the flooring.