I know attending REIA meetings might help, but it's hard to find time to do that when you have a full-time job, a family and do a lot of free-lance work at night. :)

We noticed how very inexpensive it is to purchase there, yet the cost of living very high.We spoke to a relative who lives over there who also rents out a place and hires a property managing firm that ensures the rent is paid and all is in good condition at a very reasonable rate.

The cost of other (non-new construction) houses in the neighborhood have no relationship to the cost you'll incur to build a new house.Your costs will be based on a lot of factors:- Location- Level/type of finishes- Style of house- Size of house- Whether you GC it yourself or hire a builder- The types of contractors you use- Your negotiating ability- How strategic you are with your designs to keep costs downI've built houses for $60/sf, and I've built similar houses in other locations with different contractors for $90/sf. 

Of course we will hire an inspector if we go to contract, but what things should I be looking out for to save our partnership the time and effort of a contract gone south should problems arise. 

I've hired a company for this credit issue but just wanted to see if there are any other options out there 

If it isn't insanely costly - you might want to hire a property management company. 

Your already living there, dont hire someone else to do the work and cut in your profits.

Elliot I am looking for an Attorney who is preferably a CPA and an investor to hire.  

I read something about hiring a loan office with a license or something to take over?

As someone looking to hire a contractor.... it would be a red flag to me that you would be asking for this downpayment... then again, a 6 figure project may not be that big of a deal?