The only bullet point I have for you is this: If it's ever had a certificate of occupancy AND there is anything remaining from the old home (like a chimney or an old foundation...), we can call it a "renovation" and you can avoid the hard money / construction / commercial financing. 

I'd assess the state of his apartment, deduct any damaged items with a full accounting of how you spent the money - which is your obligation as a landlord - then send any remaining money back to him. 

Especially if they're motivated to rejuvenate the city. 

Locate a Motivated Seller that will consider Seller Financing.

The company you decide to hang your license for is secondary to your own motivation.  

It sounds like he/she is very motivated.

If he is motivated then you may be in business but I would watch out sounds like you already suspect him of something.

It seems as if he is asking retail, and if he isn't motivated to sell, you will not be able to get a deal. 

I am very motivated and have been doing constant research about different opportunities and would like any information or recommendations on best approach that I can get my hands on.

That amount would remain mine in the form of equity.