None of this is legal, tax, or professional advice as I’m am neither inclined nor qualified to give it. 

Also, what type of banks/institutions would be inclined to do this type of loan?

My inclination would be to have an appraiser and/or several realtors give you their opinions on ARV once you detail the renovations you're planning on doing.

McKinnis would be more inclined to go buy the house you want, fix it up and sell it to you and then manage. 

I’m in Incline Village @Dylan Bair-  I hope we can do some business together!

I haven't been able to find phone numbers for either owner and am no inclined to show up on their doorstep-  

Often also we need to support and endorse politicians simply because they will win, and we have to work with them for the next 2, 4, 6 years, even though we hate their guts and every thing they stand for.So it is entirely possible they actually support it.....but having worked on this same exact issue here in Maryland with both the Realtor lobby, Home Builders lobby, and some other groups....my inclination to believe is the support for this was because of much worse legislation that was arising. 

@Jabari Seabrook, If you're correct in your price/costs assessments, and you have the time, experience, capital and inclination to flip the house yourself, then that's what I would do.   

And stop dealing with anyone that gives you even the slightest inclination of shadiness. 

I'd be inclined to buy the real estate while you can.