However, My savings will cover my portion to protect our current lifestyle.

That means you need to set aside a portion of your income and make quarterly payments to the IRS (required by law).

@Joe Splitrock I have one lease for all 4 of them, but they each paid their equal portion of the deposit and rent.

From google imagery the property next door has a large portion fenced with nothing on it (overgrown).

(Def:  a portion of the rent is credited to the tenant/buyer towards price of house when they buy.)What one should do is Lease and Option to Buy (two separate documents). 

With all the work being contained with the interior of the home, what would be a realistic estimate to contract the remaining portion of the project based on sq footage?

Ok looking at it again I’m guessing the 38k was your portion of purchase price with the rest financed.  

@Wojciech GrajewskiI agree with Nathan above but in regards to utilities you can charge each party a portion of the gas and electricity utilizing the square footage of each person’s living space.

If you do not do so in the stated timeline, you might only have a very small portion of your claim covered.

Is there another creative solution to funding the rebab portion of this REO deal using money we already have in 401k, traditional and Roth IRA?