- RUN, don't walk.With that said, the first draw can certainly be whatever the two parties agree to and typically it is a sizable one upon mobilization of temp facilities (construction fencing, toilets, etc) and some materials or start of demo.

I would appreciate if anyone can provide some recommendations and contacts of guys in the area that can do the demo with permits and fill, that would be great.

Have the GC tell you what time frame he can complete the project in, and then draw up your own schedule showing the milestone completion dates (demo,plumbing rough in, cover up inspection, flooring, tile, top out..etc...) 

Full gut is demo down to the studs and starting from scratch.Moderate mostly is cosmetic and can be all or any combination of fixtures, cabinets, paint, removing a wall, floors, roofing, windows, doors etc. 

I budgeted to do some of the work myself (swap out incandescent for updated lighting, all demo and haul away and install the cabinets and counters).

I just purchased my first flip about a week ago and will be finishing up demo soon and will need to start thinking about finishing materials, ie; lights, trim, faucets.... 

(Not going to lie..I am most excited about demo.

One of the take away's from the construction process was to assess the condition of plaster walls and make a good decision regarding to keep/patch or demo and start fresh.

@Marco Pangilinan I normally re-glaze the tubs to save the demo cost and to save from having to re-do the plumbing.

I did that so that I could have my demo permit in hand after closing, for example.In your case, I honestly find it odd that your lender finds an issued bldg permit sufficient to provide an increased ARV.