Any other alternatives; is this what one would consider an attempt to raise private money? 

If it is a short term hold, you could consider an ARM loan or an interest only.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

Should i consider an ARM even if initial rate is similar.

If for protection- consider an umbrella purpose. 

It sounds like you are looking to purchase a rental with a conventional loan, which means you would need to hold the property in your own name and consider an LLC after closing potentially. 

What would you consider an acceptable payment for a walk through and conceptual rehab estimate? 

HOWEVER, it depends on what kind of money you have to spend and what you consider an acceptable return.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.