From a tax standpoint, a Qualified Venture might be the best route if both of you are going to be on the title.

Many will lend on the home despite it's condition, and you'd likely have more favorable terms than going the hard money route - especially if you're planning to planning to claim this as a primary residence and move-in. 

Bonus if it's a duplex or triplex, but you can do this with a regular old house.

We're inclined to go the "replace everything" route (because if we're going to spend $100K to do "half" of the job, it seems to make more sense to spend more money now/once to do everything).I know next to nothing about elevators; what should I know? 

Dean,I have lenders that I deal with on a regular basis that may be able to help. 

I guess I did not factor or consider that appreciation would be pretty important factor for refi If I went this route. 

Get multiple quotes from 3-4 carriers on top of your regular carrier.I have found insurance companies are the least likely to have flexibility in pricing compared to other services you buy.

@Carmelo Caceres,The route you take whether to refinance out or pulling cash out depends on your goals and some numbers.

I'm a bit south of you here in San Antonio and I work with a builder regularly on new construction homes, duplex's and condo's.

We will likely go the HELOC route for the down payment/closing costs.