So I almost “broken even” with the cost of construction vs. valuation aspect.

You are not paying for their services and won't cost you anything extra anyways. 

I see hard money lending as just part of the cost when doing these kinds of deals.

Sewer line backup, ordinance & law, and replacement cost coverage are coverages I include. 

If you are in a state where eviction cost is high and it is tenant friendly you may need a higher credit score to offset default risk and eviction cost.If you are in a landlord friendly state where it is easier to get non paying tenants out you may be able to handle more none payment risk.  

Insurance cost for weather-related disasters is growing to a major concern in many of the southern markets.

But again, your profit after selling costs (and any capex improvements) would have to be in excess of $60ok to really make sense.

We were shocked at the cost of goods, lumber, cabinets, paint, plumbing.

After the meeting there was no action plan other than doing a cost segregation study on the properties we had.

I think there is a common misunderstanding that licensed contractors cost more.