I recommend you check with an authoritative party to verify if you can or can not execute your wholesale deal in the manner you described legally.

But i wanted to wholesale in a manner that would benefit my long term goal. 

(a) If the Company establishes the title, or removes the alleged defect, lien orencumbrance, or cures the lack of a right of access to or from the land, or curesthe claim of unmarketability of title, or otherwise establishes the lien of the insuredmortgage, all as insured, in a reasonably diligent manner by any method, includinglitigation and the completion of any appeals therefrom, it shall have fully performedits obligations with respect to that matter and shall not be liable for any loss ordamage caused thereby.. . .To the extent that you are requesting compensation for the Alleged Damages, please see Condition8(a) of the Policy which provides the Company with the right to establish title as insured in areasonably diligent manner without being responsible for any loss or damage to the insured.

All the units look great and done in workmanlike manner but the 2bd/1bath unit has a funky set up and layout where it looks like it was pieced together. 

Waiting for rate drops is not my idea of playing the game in a smart manner. 

Later on in my investing career when I have less time to deal with the day to day I will hire a PM and have a good understanding if they are running my property in an efficient manner. 

It appears you are focused solely on the financial components of the project without understanding the insurance and liability factors of self-performing the project in the manner in which you propose.

I observe the term “investor friendly” lender used regularly in these forums either by posters seeking financing or in the manner in which lenders market themselves.

Unless you have some kind of compelling reason to buy there, probably there are places with better returns. 

You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise violating the law in an egregious manner.