Their bank does not offer this service in reoccurring manner.

I am converting this back to a duplex, going to live in one half and rent out the other.

Is anyone in the BP community investing in West Homestead?

Speak with the commercial lending department as it's 5 units.If those are the numbers, you may be able to do a deal like 50k down from you, 50k contribution in the form of seller financing (2nd mortgage), and then the bank can provide the rest including purchase + rehab financing. 

Or do I have to actually have the work completed already and paid for with receipts to include in the itemized deduction?

Tell the current PMC to transfer the SD to the new PMC, that way they have a record of handing it off to a licensee (assuming PMCs are required to be licensed in your state) and are covered in case of a Real Estate Commission inquiry.

You have plenty of options in DFW.

In your experience, what specific factors do you find most critical during the underwriting process?

Just getting my financial house in order and talking to some lenders. 

I work full time and have partnered with others in DFW on assignment of contract deals for a few years now.