My questions is regarding lenders, for this type of investment what lending bank would be your primary go to?

Definitely not #3 because the bank could call the loan and you'd have way too much money down anyway

Most go back to the bank as there is no equity.

Banks make it hard for us to acquire multiple properties.Plus the buyer is subject to current interest rates from a traditional lender of a private money lender.Subject to purchase allows us to help more sellers and give the seller more for their property.Allows the buyer to close fast and does not require an appraisal or loan approval by an underwriter.What Are the Steps?

And as bad as Harvey was, it was nothing relative to how Katrina impacted NOLA.The banks are falling all over themselves trying to be the good guys.

I have been looking into financing through smaller local banks.

I would also ask the assessor if properties are reassessed following a sale (in many jurisdictions they are).  

My question is can I keep the 85k that I will net from the sale in the bank?

Or should I look into another bank? 

Rates and terms will vary greatly, but general banking qualifications will still apply.