At this point, I think it is wise to move him out ASAP so he doesn't try to "live out" his security deposit or try to sell me any more stories.   

What I do know: Privately ownedLast sold at over $600,000 in 2015Last assessment: 2016 at $128,752.1287Classification 2-09Tons of violations for poor upkeep Rat investationPoor lawn maitenanceTons of trash(doesn't seem like an issue at this time... no rats seen on the way to work)What I would like to know: Would this be worth tearing down?

Good luck and if anything doesn't seem clear or right, run it by the forums on BP. 

You are right that on higher end flip market doesn't move as quickly.

Let me run a scenario by you... and here I'm just playing devil's advocate I'm sure you're already frustrated with this individual and sounds like you've already made up your mind.Scenario #1 tenant breaks shower door:Tenant doesn't disclose to you that they broke it and moves out only to leave you with a large amount of water damage AND a broken door.

Also for the record, besides income, money in the bank and credit score typically your experience level doesn’t determine your rate at all really for 99 percent of banks

This can be a wait and see if the HELOC doesn’t pan out.

There is little to dispute here as far as failure to perform on the contract (assuming the contract doesn't give them a longer period of time to finish than you are claiming).

What if he’s living there and then decides he doesn’t want to move?

It doesn't fit a lot of great rules I've learned recently from religiously listening to the BiggerPockets Podcast.