In the Bigger Pockets free book, "Real Estate Rewind", as one of the 11 co-authors I wrote about one such Tax Sale purchase and made money but not enough money to warrant the risk involved.

refinance our own home with some money down + purchase another flip? 

Quote from @Burke Atkerson: With over a decade of real estate investing experience and over 100 flips, I now provide private money & hard money loans.

@Jeanette Land why don't you canvas your network to find a money partner?

Spend a little more money than you might have been planning to, buy in a better area (i.e. not a “turn key” 100k house off the mls), and self manage.

They must be very low odds because insurance companies are in the business of making money, not paying out maximums.

Thats a lot of work that a company would have to do and they would want their money back on the development costs.

“Money goes where money is treated best.”Your future ability to attain and maintain financial freedom depends on the city where you invest.Investment TeamAn essential location selection criterion is an experienced local investment team.

They aren’t able to get a mortgage themselves so they would provide the money while the mortgage and deed would be in the others name.  

You can't pull money out if there is no equity.