I'm finding it a little hard to understand why it's more expensive to do this way?

Right now, Arnold is peddling the Capital Syndicate(CS) program for folks to pay $97 to get his system which shows you how to find investors for "private money."

Insurance is definitely an issue there, and will continue to be.

Has anyone here been successful in permitting a conversion?

So, I started with a couple build-to-rent homes, then a couple more, and then felt comfortable to build a mini development.

And before countering had a conversation to try to find out what's really behind the offers. 

or need to get texas license? 

An appraiser is not going to use single family homes on the appraisal if they do the bank/lenders Underwriter 100% will ask for more comps that are mobile/manufactured to be compared to subject property.

So it's a waiting game for that property until you have enough to do a cash out refi.

There has been quite a few reports of folks really gouging the hell out of victims of the fires.