I know the government regulations state an "owner builder" can only buy, fix, and sell 2 homes in a 3 year period, only if they have lived in the home for 12 months prior...

I know for sure I should get Builder's Risk Insurance and/or Empty House insurance.

I could also lower the price of if I had the builder complete 80-85% of the home and hire out the remainder of the work to a CG.

I'm in Denver, where you don't even have to remove the dead bodies and you still get top dollar for it.

If it's just a little garage try DIY owner/builder for the basics and bring in a good finishing crew at the end with a designer friend.I agree with @Bruce Woodruff plans first...though plans are expensive so I think you are smart to explore here.

He is a well known builder around the area and has built other homes we know of. 

I'm now to the point of thinking maybe a owner builder construction loan would suit my situation better.

There is a system made by Legrand called Intuity, which is the home builders dream as it stays with the home and it is turn key between transitioning Tennants with 24hr support from the manufacture, so it’s very hands off.

If I saw a lot of able-bodied men hanging around at that time I would generally pass.

I have a builder that specializes in building 2 to 12 unit properties that has reasonable rates, I just need to find land at a reasonable price.