Loan declined due to unlivable units, options

[Jeffrey Clyne]

Would like to start by saying how awesome biggerpockets is. I usually find answers to my questions in podcasts and blogs, however I am in need to help!! I recently went under contract on a 3-family home in Somerset County NJ. Purchase price was 300,000 and I planned to put 25% down, under a primary residence mortgage. One unit is in great shape and I planned to live there while completing repairs on second and third unit. The home is "as-is" and although mortgage is for a 3-family home, I assumed that only one unit would have to be livable (for me as owner).

Anyways lender appraised and deemed the 2nd and 3rd unit unlivable. 2nd floor needs drywall, kitchen, bathroom completion. (Maybe 25k in repairs) 3rd floor needs kitchen (maybe 7k in repairs). The news was devastating as I'm out roughly $2500 for inspection/appraisal cost. Even worse is that the house is slipping away from me!

My question is what can I do if seller will give me a second chance and extension to close. Are there any options besides fha 203k loan? Or hard money lender?

Concerns with 203k, Its my understanding that the process could take 45days.. leaving the seller likely to not accept. Also if I have the ability to put 25% is 203k really my best option? I'd prefer to not pay insurance on the loan. Also I have connections to cheap labor :) I'd really prefer to avoid paying a contractor to charge me full boat for "regulation requirements". 

Concerns with HML, the quick closing possibilty would be great however do they strictly oversee the repairs? The house's appraised value would far surpass the interest and points charged if I refi'd later. I'm not even sure they would offer a loan to me? I am employed full-time, live rent free, and have one two-unit property currently both rented.

Bottom line what are my options? The house is selling for 300k and has appraised prior to repairs for 440k. I have 75k to put down. I was planning on maxing out my homedepot and lowes cards aswell as getting small loan from parents for repairs if the orinigal mortgage went through.

Any help is greatly appreciated! I'm striving to have a new rental property every year so time is of the essence! Thank you

Jeff