I am reconsidering if I should hold the flip under the C-Corp or perhaps create a NEW LLC or S-CORP, take out a SBA Loan, fund the house, and pay back the loan immediately and have access to the profits for a future flip or to re-invest. 

Overall I don't think it was worth as much money as they were asking for by any means, and I wouldn't recommend taking it or take it again if I could reconsider.

If that was true then I need to reconsider my strategy since expensive insurance is hurting my cash flow numbers for properties i'm looking at.

You might reconsider.

They asked my husband to reconsider and argued as to how both my contractor and inspector didn't know what they are doing. 

Do you think that this is just a very high exception and I should reconsider looking back into condos or stay away? 

If you think new construction is a good strategy at this point in the economic cycle, I think you need to seriously reconsider your plan..

If you need 80% ARV, then I would recommend reconsidering the validity of the investment. 

And an electrician's license takes time to achieve, you may reconsider and get a contractor's license.

@Kushal Chakrabarty There are lenders that have no minimum loan amounts, however, I would strongly urge you to reconsider that price point.