Not sure about the mechanics of how this works when buying rental property.

I am also a mechanic and i learned years ago that is a but for every seat, because I've seen a lot vehicles and say who would drive that thing and someone always does.

The contractor could put in a mechanic's lien. 

Key stipulations to keep in mind would be disclosures (lead based paint, structural/mechanical/public safety, insurance claims history) and which items do and do not transfer with sale.

I got a higher end freeze-proof faucet that has an internal drain mechanism to relieve pressure if a hose is left connected, but I would bet he isnt going to leave a hose connected in the winter again. 

It's not absolute just one mechanism among many with due diligence and a purchase and sale contract to try and keep the seller honest. 

I know about necessary egresses and about quick release mechanisms for window bars and about alarms vs. window bars... 

A great many more forum posts about people looking for guidance on the specific mechanics.

I know there are a few "hoops" to get through with the 203K but I'm fine with jumping through a few hoops for some cash flow.My question is this: Supposing a property needs a gut rehab or close to a gut rehab, can we hire a contractor using the 203K to handle most of the bigger jobs (roof, siding, plumbing, electrical, drywall, mechanical) and then pay out of pocket to finish the smaller parts of the rehab ourselves (paint, laminate flooring, etc.) ??? 

@James Wise  Hahaha looks like an auto mechanic with car oil all over their hands used that couch as a rag