They'll receive back only the bid amount.

Not the best thing to do - I should have raised it originally for a higher amount.

If the rate is reasonable then it may make sense to try to save fast to get to the 3.5% down payment on a double or triple - househacking may allow you to increase your savings rate and pay down that loan even faster.As for estimating costs, closing in NY factor at least 1% of the mortgage amount for tax, plus $1500-2000 for lawyer, title and fees, then the amount required by the bank for escrow will depend on the actual property taxes and insurance.

From my investigation a fair amount of time is spent on developing (private money)   

Just like getting your RE license you'll have to complete a specific amount of hours.

However, we typically use the FHA-203k loan because it involves a renovation, which I highly recommend if you are looking to really boost your equity and have the cost of the renovation wrapped into your loan with a VERY LOW AMOUNT OUT OF POCKET.I like the FHA loan, but honestly, the Fannie May Home Style is an even better product at this point because you just have to bring a bit more cash to the table 5% vs. 3.5% (w/ FHA), but you have a bit more flexibility.  

As others have said, there are other options at lower amounts too!

I'd be very open to that.A High Yield Savings Account at 4.5% yields a close to 2.5% after-tax amount.

I also wouldn't be where I am today in terms of my contacts and relationships with vendors, to be in a position to self-manage confidently out of state.All that being said, if another deal with the same amount of hair on it presented itself to me today, I would pass simply because my risk profile has changed.

Assuming you've met that, your original loan amount was ~$364,500 with 10% and a purchase price of $405k.