Does Hard Money typically cost 30-40% of the purchase price?? 

The Mexican corporation, generally advised if you buy multiple properties, given the higher costs.

Another idea that we have been exploring is using the cash value of whole life insurance funds for emergencies. 

Regarding insurance adding additional umbrella insurance is great idea. 

This could easily cost you $10’s of thousands if you plan to stay in the home 5+ years when you return. 

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.  

The loan is listed on the HUD and they provide lender's title insurance.   

Id keep looking if it was not an approved short sale ( even an approved short sale takes a very very long time and theres no guarantee that you will even close on the house after months of waiting). q1)There are plenty of non traditional lenders that could offer you construction financing if the numbers make sense but it will cost you with points and a higher rate.

For example do you have a great w2 and can you afford to cover costs of a major repair or 3 months of vacancy?

When you took in the increased cost of the build how did you arrive at that percentage?