There's a common belief that properties can "fail" inspections or appraisals or they certain loan products can't be used on distressed properties.

Great write up, choose your poison, but different products are suited to different situations!

DSCR Loans are going to be strictly business-purpose 1st lien loans - so something like this with a closed end second or HELOC is going to be a different product entirely.

As a non owner occupied property minimum down payments are:Conventional (single family) - 15%Conventional (multifamily 2-4 units) - 20%Non-QM (1-4 units) - 20%Certain Non-QM DSCR products allow the use of gifted funds for your down payment. 

I'm wondering what other types of creative financing or loan products might be available for my situation.

Again, that is just for conventional products and everyone's loan to value is the same.

I ended up paying over $2000 as a start up business with no income and not even receiving a final product which could be utilized.

you could look for opportunities with reverse mortgages in default (backwards marketing) and tax defaulted property (the last group can be difficult to sift and sort due to large quantities).In the end, you’ll do much better focusing on solving problems that others cannot or are not willing to solve (hoarding, squatters, liquidity, defective title, skips, etc.).BTW, I started with working foreclosures (1978) and then deceased owner and title-impaired property about (35) years ago and have closed several thousand deals to date.  

Here it appears the contractor misrepresented/ concealed the defect rather than repair it.

we have a no seasoning product, but it does not involve moving shell gam you are proposing.