With that said, you will need to find a contractor and/or a third party who is willing to deal with the paperwork needed to validate that the work is complete at each phase so that the lender can release the construction funds.

I can message you their info so you can validate.

Hey, I don't like this answer, but it's a valid option.I like Account Closed answer, find a local bank and see if they will write you a note. 

@Steve Mandelbaum, your concerns and approach are valid and intelligent, IMO.  

The tenant runs a hair salon out of the home and uses the finished basement apartment as an Airbnb.Now that I have the property, I am willing to offer the tenant a lease to create structure and valid expiration.

The tenant runs a hair salon out of the home and uses the finished basement apartment as an Airbnb.Now that I have the property, I am willing to offer the tenant a lease to create structure and valid expiration.

Will there be a warranty on all renovations - how long?

This will include properly screening the Tenants, having a solid security deposit, and having a home warranty and/or handyman contact at the ready, for repairs that come along throughout the month. 

Due to some personal decisions I bought a new home in round rock, about 7 miles further north of my current place and I'm moving there in a couple of months.I was initially planning on selling my Pville home right after the move but now I'm thinking I may keep it for a few years, perhaps for another 5 years or so while the original builder warranty is still active, and keep it as a rental.

The only ones that were valid were caused by the Tenant and were easy to remedy.