What about homeowner's insurance?

Throw a post on Craigslist in sure you can get someone to do it for a decent price

It's a 3% tax rate on a purchase price of $125,000, the assumption that insurance is about $1000 for just the basic policy, and the annual HOA fee of $450.

Deposit money should be held by a neutral party like the title company if you are not using a realtor.

When I saw your title...

They'll also want to know if you can handle the carrying costs like interest, electric, water, sewer, garbage, house insurance covering construction, etc, etc, while you're doing the renovation.

Each lender has slightly different criteria for their refi products as they pertain to cash-out vs rate and term, title seasoning, reserves etc.I recommend talking to a local bank, a regional bank, a credit union, and a mortgage broker who has a variety of products.  

are you purchasing (taking title) and then resellilng?

The standard for a lender is 10% cash on cash going in and after a reserve for replacements (and insurance) that I don't see here.

If your area doesn't license contractors I assume any legitimate company with the proper insurance to pull permits would be acceptable.