Are there any options out there that won't tear away the margin on flips?

However, an easier option would be to use a bridge loan to help with acquisition and rehab financing if the property needs some work.

RentRedi has options of "Accept", "Reject", and "Request Update (more information)".

Option 3- If they have qualified for FHA; counter the offer to see if they can qualify for low downpayment conventional loan

When Trying to qualify for a traditional loan, lenders usually price your purchasing power at 3x your net income.

I was looking for some advice (viable target areas in Cleveland or Ohio in general, financing options and credible PM/realtor contacts) from the experts here though especially if you are in a similar boat as mine (reside in Canada/Ontario area and invest in US). 

That said, I'm grateful for the alternatives you present--you're keeping the bottom line in mind, so I appreciate your help in exploring options that achieve the bottom line for the investors. 

@Ana Vhan there are many commercial options where you can add multiple locations/multiple states onto a single policy.  

As far as I understand, as I am living in it, I was able to get cheaper down payment options.

If you have equity and decent credit, a conventional Fannie Mae HomeStyle (or the Freddie Mac version) would likely be the better option instead of an FHA 203k loan (which will require a 3rd party HUD consultant to oversee the deal in addition to having the contractor involved).