If you get the REPS and meet 500 hours managing your own materially participating LTRs, your LP interest can benefit you.

I buy most of my materials from Home Depot- because they are everywhere and the prices aren't bad.

. - Some credit bureaus and services (like Experian RentBureau or Esusu Rent) offer alternative credit reports that include rent payment history, utility payments, and other recurring bills.

What are your alternatives to replace your current investment? 

Your lawyer should be able to go after the home inspector and previous owners if they hid a substantial material defect.  

If you're not working with a local agent to help you screen tenants...I would say the best way to get as many eyes on the property is create marketing material - add to local FB groups and host 2 consecutive open house weekends showing a model unit and amenities.If you're close to any University Campuses - I would also suggest to partner with the university for housing opportunities for upperclass students.Good luck with filling those up!

Also, the incredibly low interest rates and low yearly property taxes (depending on your location) help a bit on the cash flow end.From my understanding, opportunities exist in different cities in Spain, especially when considering distressed properties outside of inflated metropolitan areas (not to mention the alternative ways of acquiring property like judicial auctions, cash purchases, etc.). 

With that said, does anyone have any additional tips on how to cut costs on materials when flipping? 

Alternatively, I could stick with the hard money loan and refinance into a conventional loan later.I would appreciate any suggestions or advice on this decision.

Alternately, it will greatly improve your negotiating position if you elect to partner with a builder / developer in the area to  actually bring the project out of the ground together.