This sounds like a live in flip, which can be a nice way to get some tax free capital (if you live in it for two or more years).

#1 Sounds like nothing.#2 Are you saying the owner should pay? 

It doesn't sound right to me. 

The result: 3 were completely broken, 1 shut off half way through and then broke, and 1 took my $4 and spit in my face.

This sounds like a great situation for a DSCR loan.

Escrow was 120 days, the 5 month reno took 9 due to delayed payments and constant oversight that were completely useless.

Current cash flow is $557/MO - Cap Rate 6.9% and COC 18%.Does this sound like a great opportunity?

It's what they post as FMR, but it's not necessarily a reflection of what you are going to get, I completely agree with you.For fun, I went on rentometer.com because it usually shows good example, and for houses specifically, here's the numbers:1 – 4 Bed Summary1 bed2 bed3 bed4 bedAverage Rent$1,139 ±9%$1,735 ±5%$2,281 ±5%$2,892 ±12%Median Rent$1,000$1,750$2,000$2,67525th – 75th Percentile$901 – 1,376$1,319 – 2,150$1,681 – 2,881$1,987 – 3,79710th – 90th Percentile$687 – 1,590$945 – 2,524$1,142 – 3,420$1,173 – 4,610Standard Deviation$353$616$889$1,341Sample Size11596314Search Radius3.0 mi3.0 mi3.0 mi3.0 miIf would actually like to chat one on one with you to understand why all the FMR are so high in rentometer.com, zillow.com, huduser.gov, CHMA's website and you are telling me they are far from these numbers.

Only answering the 'when to pay' question:A lot of my flip friends will pay once a task is completed.

Having a real estate lawyer look it over seems like sound advice as well.