Have escrow released when the wrap is done and direct-pay the taxes and insurance.

I've always gotten a signed "authorization to release loan info" from the owner on record. 

The process would be different if it was a short sale, whereby someone representing home owner would have to deal with bank to get the lien released for less than what is owed by the borrower. 

The below pictures are the outline for the approved plan released by the Alexandria Economic Development Partnership in 2020.

If so, I would definitely consider a shorter-term lease or MTM lease to get you into that period and re-negotiate with the current resident or re-lease it at a higher rate. 

With the lean and our body height we trim up to around 22 feet.  

Talk to your tax advisor about how to release your passive activity losses based on your situation.This post does not create a CPA-Client relationship.

Bank would want 20% down (200k) and the State on board prior to releasing funds for buildout.

Are you saying they don't count if you can't find the bodies?  

By way of example, a lender may charge retainage, only release soft costs upon C/O, may limit loans to a set number of draws or only allow draws once a certain dollar amount of work has been completed.