If you do want to move forward with this property, one recommendation I would get is to find a local contractor with experience that you trust and have him advice you on the scope of work that may need to be done as well as the cost it would take.

By the way - for the same reason the 1st position lien holder will be uneasy with 100% CLTV, as a buyer I would be uneasy with it as well.

HOLD & REFI - The improved cashflow (I have one lender saying he could get me into a DSCR loan at 6.5% which would 3x my cashflow) is enticing, but I'm don't want to risk anything especially having been burned once and would prefer to be on the up and up. 

You've done well with having options, now just need to decide and get on the same page. 

It's also important to know when you face the risk of a lawsuit.

Depending on the city, there are good opportunities for STR/MTRs as well. 

Some builders risk policies don't provide for live in.

They tend to cash flow really well ;) They cash flow well, but the rate of return is dramatically reduced.Assume a house costs $200,000 and rents for $1,500.

There are best practices on certain items that provides a guidelines.Commissions are always negotiable like any other services, you can shop around for the best value for money.All depends on the risks that you are willing to take.

The longer the development cycle, the more risk on the LPs, the higher the return.