I had not asked for the difference in payout when we put the policies in place.ThanksHi Andy - a replacement cost policy will cover the cost to replace damaged property with like kind and quality.

then you can collateralize your owner contract to pull some if not all of your cash back out of the deal .. either way sounds like your going to be spending some money on attorneys and you will have some liability from who you sold it to if they get harmed or damaged..  

Even if it has a tenant you will run into issues: wind storm damages roof/siding, water heater needs replacing, dishwasher dies, etc.If you live in a place where you rent the spare bedroom it will be easier.

To put it plainly, I value his influence in the local circles and his connections throughout town.  

Eviction can take months and that person can end up damaging your property.

Also, I haven't heard of liquidated damages for contractors of this small scale before.

That setup is what leads to causing actual damage to sellers, when wholesalers tie up properties and don't deliver.  

Many of the wood framed windows are water damaged from being left open when it was raining. 

Also as Ryan noted, if they're not cooperative and friendly then they will not be good for showings and may actually damage the property. 

Have the remaining tenants sign some form of a Condition of the Premises document stating that they agree to assume responsibility for any additional damages to the property from that point forward; meaning they can't come back at the end of the lease and say "We're not responsible..Bob did that.."