With the future being so uncertain I realized there was a need to do more than just rely on my job for financial security. 

Yes after I posted the first one, I realized my questions were actually more general than specific to the St Pete market.  

I also realized last night (after I made my original post, of course) we could do a HELOC on our primary residence.

Good points.I'd add square, level, plumb - license, insurance, bond - using permits to follow codepointing out problems the owner doesn't realize they have that are serious. 

@Dave Foster interesting, I didn’t realize this route existed.

To make a long story short, for one property you are not going to save $ in the long run and realize materials can take 6-16 weeks to arrive. 

And basically I’m just realizing I don’t know how to know if these are reasonable prices or not?

I mean if a seller has any real estate knowledge at all isn’t he going to realize that earnest money that is returnable to the buyer for any reason at all at any time isn’t really earnest money?  

I realized I hadn't thought about it, but it will likely be working professionals, students, or families.

@Justin Landesman I just realized you're in Los Angeles.