BUT, I am sick living in construction and would like to move to a new home and then finish fliping and sell or hold the two homes asap.

The appraisal was the longest hold up but the junior loan officer we were assigned seems to have zero idea what he is doing and zero sense of urgency...

If your cash flow is break even and you don't expect a groundswell of appreciation, why hold it? 

I want to go the buy-and-hold route, and I am interested in finding a duplex that will provide a steady cash flow, a high appreciation value and does not need renovations.

Idaho says, “hold my beer.”You go Idaho!

Can you hold them in a crisis?

Also, if you form an LLC to hold the property, you will need a designated agent(attorney) in that state. 

We could build larger, but there will be less Buyers and the home can potentially sit for longer and holding costs get expensive.Not saying building larger is wrong, but just giving you our reasoning for our home size.But I do 100% agree with you. 

Many times they will hold back the renovation costs in escrow and release once you’ve shown the renovated unit and leased it.  

You're running a business and when you proactively do so, your tenants will know that you're holding up your end of the lease - and if they don't, they don't stay.Hope this helps.