It took about a month to find the replacement contractor, and then another month to get them on board because of the slow rep we were designated.

I will definitely reach out to a tax specialist (appreciate it Natalie)  to confirm where I am at with this K-1.

Is anyone able to confirm this?

If you do use a management software, it always confirms the tenant is setup and capable of paying their first rent on-time with no excuses.TL;DR:  Use whatever rent payment system you intend to use. 

I have absolutely no construction/renovation skill, and have no interior design instincts.

I teach high school and I have a background in graphic design, web design, and social media.

The numbers in Zillow and Trulia are usually pretty accurate, but always confirm.

Assuming it's your FIL is listed as the owner, you can pay a title company to do a title search and confirm there are no liens on the property.

All of the items mentioned are cosmetic and would not interfere with the habitability or the property and thus, should not affect your loan, but do confirm with your lender by sending photos of the issues along with the good photos of the home.

I would confirm they are a reputable company that is insured and bonded and that they hold your funds in a Qualified Trust or Qualified Escrow Account.