Although, the inflationary protection it adds cuts a bit from the risk of purchasing it too high. 

I can cut any slice of that pie I want or need to simply because I've mastered the basics!

You already got $400 that he didn't owe you, I'd be happy/cut losses and move on.How much will this cost to repair versus cost to sue?

The basics are that the LLC should be in the state your property is located, and California makes sure they get their cut.

You may want to look into/ask your lender about the Home Possible program (our neighborhood had no income cap), which I think cut down the PMI a bit.

I paid off $87k in personal debts by cutting back and cash-flowing them down.  

Who maintains the property, i.e. cuts yard, bushes and picks up leaves?

I thought I would jump in here since I am the seller and respond to the "BS" comment as that make it sound like we are dodging responsibility or trying to cut corners during the rehab.

Well at least you cut down on some of the costs for doing the turn overs initially. 

I would say just cut your losses and start over in FL.