Don’t fully trust GC and a live and flip is not the best strategy to make money (emotions get involved) Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Believe it or not, inspectors are real people with feelings and emotions.

Failure to do so would weaken your protection greatly.

If your offer is similar to others that they’re entertaining, and the seller has a strong emotional attachment to the home, your personal plea might just be enough to push your offer to the top of the pile.The Seller Rejects Your OfferSometimes, things just aren’t meant to be.

Also, as you grow REALLY big, your risk starts to go down with economies of scaleStress is a factor of emotion, not mathematics.

Of course, that's an emotional component, which I would just see as a 'math problem' now.Also, the homes were cheaply built and required capex to sell at year 10. 

Having lived in a basement myself, I can say with authority that there is a negative mental / emotional impact living in a basement unit vs an above grade unit.

In a rush to write this so pardon the mess.Don't get emotional let the numbers talk and no matter what DO THE WORK.

However this was an emotional decision, thinking about a nice to raise a family.

My main concern for you is the emotional toll on you as it drags on, putting your family's life on hold while you deal with the uncertainty of the outcome.