Make sure to install a good vapor barrier, and have proper ventilation and you should be ok.

IF they don't, they force you to make conservative assumptions (e.g. expenses, capex, vacancy, etc.) and you end up putting in a lower offer.Another tactic / strategy is to simply give him his price (with the proper out clauses), get the information and then re-negotiate the price.

If your goal is to generate passive returns, real estate (done properly) may not be the right vehicle. 

I would contact an attorney that specializes in evictions or find a and handle this legally and properly.

The collection agency should be able to give you the balance due and will collect your credit card information.

He wants to also purchase his own home next year before his wedding, but again has no money for this, actually has a good amount of credit card debt.

Ill send you a gift card or in person. 

And even pre-approvals must be worded properly and followed up with the appropriate changes to the Financing Addendum so that what happened to you this time won't happen again.

Anyway, I am trying to maximize returns and run things better now that I am setup as a real business tracking everything to the penny, following proper LLC safeties, and added 4 more units, etc. 

Any legit contractor with proper experience, a decent rep,  a gc license and insurances can typically be approved.You absolutely want a Lender with plenty of 203k experience....they may give you a couple of contractor names they have approved, or not.