The prosecutor said we had a very weak case because the store's manager who was on duty when the theft happened was fired right after I sold the store (at a $58,000 loss). 

He will find the money but would obviously prefer that you take the loss.

I recommend the GC get Builders risk insurance with you as the loss payee. 

Also look at the annual financial report to see if they are reporting a profit or a running loss for the HOA.If this building is older plan on special assessments or monthly dues rising at a fast clip to cover ongoing repairs needed.

Some have written into their lease that any violations/fees incurred are the sole responsibility of the tenant in order to recoup any losses they may have.Hope this helps.

/month in cash flow (after all expenses, including a PM) once I do the Refi.3 - Must recover any cash I put into this deal, including cash back and cash out from the refi, and cash flow, within the first year.Example #1:  Total cost = $55k; ARV = $60k; 75%ARV (refi) = $45k; Cash OOP=$10k; MP = $300/m Cash Flow before refi (6 months) @$700/month = $4,200Cash Flow after refi (6 months) @ $400/month = $2,400TOTAL Cash back 1st year = ($3,400 loss)I wouldn't do the above example #1 since I would be $3,400 short at the end of the year.Example #2: Total cost = $50k; ARV = $60k; 75%ARV (refi) = $45k; Cash OOP=$5k; MP = $230/m Cash Flow before refi (6 months) @$770/month = $4,620Cash Flow after refi (6 months) @ $540/month = $3,240TOTAL Cash return 1st year = $7,860 - $5k OOP = $2,860 total GainI would do the above example #2 since I would be $2,860 ahead at the end of the year....as long as the Cash Flow of $540/month would meet my Rule #2 above of minimum cash flow after the refi loan is in place,and......as long as the refi amount of $45k was enough to move forward with the next deal.

On the other hand, drawing a concealed weapon is only feasible if you are not the target.

This file is ready to close, get this in your profolio before the end of the year and claim it as a loss on paper for tax advantages!

It seems that you are selling at a loss now, so is it practical to spend that much money for renovation if there is no return on investment?  

Either that, or the price they will accept puts you at risk of loss if all doesn't go to plan.If you use this approach, I foresee tensions along the way.