Hi Chris, there are several options you could consider, but it would all be based on your risk tolerance. 

Here are the options that I have been thinking about:1.

So my understanding is it's still one of my best options for a loan. 

Another option would be working with private lenders to see if they're open to your idea should you need additional funding. 

Yes many easy commuting options to NYC such as the lightrail, path train, ferry and bust.

There is risk in both options & as an investor you need to weigh those risks & stand firm on whatever you decide. 

I havent gotten an insurance for this and a week after close I consulted some insurance provider and he didnt offer me insurance options.

You should have some options! 

Staging your house well can help you attract more attention from buyers, which ultimately helps it sell faster and maybe for a higher price than an unstaged home (see visual):What Are My Staging Options?

Off-market property is the best option for fix and flip, but since you are planning to live and flip, some on-market properties would also work.