I am sure they would not be the first foreigners to invest in the US, I just want to understand how can they do so by either minimizing (legally) their tax implications in the US or avoiding double taxation.Would you like to provide an update regarding this topic?

You can provide documentation or evidence that may support your case for a lower escrow payment.

I'd start by getting some kind of idea of what it would cost you to provide a driveway.

If it's $390 for a doorbell change, wired, all in... ummm... might be on the high-end but it's def. not 'gouging' and def. not unreasonable.... sorry I know it's not what you wanted to hear, again I encourage you to hire those services yourself and you will quickly realize that the trades will charge you the same or likely more, without providing you all the 'extras' like contacting your tenant, or accessing  your property on their own without you present and then locking up, posting it to your property account ledger, etc. etc. --- if they even take the small job at all.

- Does pursuing the tenant involve obtaining a court judgment, or can I simply invoice the tenant and then involve a collection agency if they don't pay?

Dodd Frank will apply...see below.Not More Than 3 Properties Exemption Any person or entity cannot provide seller financing to an owner occupant more than 3 times in a 12 month period without using a MLO (mortgage loan originator).

Regardless of the type of loan (Dutch or non-Dutch), HML’s only provide rehab funds for work completed after some kind of inspection (in-person, photos).

I do think the contractor who came in person seems like a trustworthy guy but it’s the first time I met him.Lastly, should I be the one to provide a contractor agreement for them to sign before getting this work done?

A family member agreed to finance the down payment, but I ran into a snag obtaining conventional financing so I ended up borrowing the entire purchase price from the private lender.

If that is what you mean, yes, the borrower must sign a letter allowing the servicer to speak to you and provide you information about the loan.