Purchase price ~190kRenovations ~30k - new kitchen, remove chimney, knockdown and redo walls around chimney/kitchen, new ductless HVAC, hardwoods, Redo bathroom, full interior paint, Full replumb, updated electrical.  

.- A date and time you will come to attempt to catch the stray and take it to animal control and reminder of process and rules if they want to adopt/retain the strayUnless you have proof that the babysitter is staying beyond your guest policy, there is little you can do there. 

All new windows (some larger, some removed), new floors and paint, removing a few walls that aren't structural, two net baths, making a basement into a room, closing off another room by extending the floor a little and adding a very small piece of wall, adding a swamp cooler, new water heater, vapor barrier, replacing kitchen cabinets, adding tub in one of the bathrooms, moving toilet bowls a little, adding a larger deck, etc etc

I’m trying to figure out what I should do with the wood, mainly the walls.

Hazard insurance is usually one of the best insurance values in the marketplace.here is my bet.. once the neighbors attorney realizes you have no insurance .. they will want a big retainer.. and your neighbor will not have it.. and that will be the end of it.. if your worried sell the house now.. cash out .  

Write down your costs associated with this learning experience and decide if it's worth it to retain an attorney ($5,000+) and pay their hourly fee ($150+) to go after someone who seems like a deadbeat anyway. 

The last home we did was $600 CO2 & Smoke are now req'd outside of all bedrooms, basement, first floor etc etc We had to go with FM models to avoid tearing apart walls we had already completed.

The thing is, insurance is only retroactively and doesn't keep you from getting vandalized.In marginal neighborhoods they'll watch you and they'll not only take water heater, heating system, plumbing (if copper), but they tear open the wall to take the wiring (which they'll later put in a little bon fire to burn off the rubber coating) to sell for copper.I would suggest for you to either get a wireless, monitored alarm system , which can be a deterrent in the first place or see if a company like this is in your area , who covers windows and doorshttp://www.vacantinvestmentprotection.com/

If it is old enough to not be insulated, installing new high efficiency windows without insulating will just allow your tenants to feel the drafts coming from the bottom plate of the wall and around the outlets and lighting.

Use some boilerplate agreement and you are "working for" the agreement, the agreement isn't working for you.In other words, use some off the wall OA and your activities are then bound within the terms set up in your OA, if you construct your OA to allow you latitude and diversify your operations specifically for related aspects of real estate, you'll be less likely to operate outside the terms of your OA.