The tenants in the 3 bedroom rental aren't in a protected class but I do not want to get in any kind of legal bind. 

.: I would reply to his threat of going legal with the final punchlist you're requiring to release final payment.

Unfortunately I don't buy in Milwaukee (I stick to the chicagoland area), but if you deal with wholesalers put in a clause or have an addendum they have x business days to find a buyer and resell the contract if you do sign.

I like the one that requires payments to be deposited in an escrow account:New York state law requires that consumers receive a written contract for home-improvement work that exceeds $500.

Every one of the owners he is under contract with will tell you to run from this builder (law suits in the works).  

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

I would not make this a legal matter, but you will have to decide if you want to commit to living with this landlord.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Who would not want a legal, permitted unit for $8k or anywhere close to that (i believe the $8k is likely optimistic)?  

If you need financial help, ask under the "Finance, Tax, and Legal" forum.