What strategy/approach should I venture, given my current limitations? 

My end game is cash flow over a hold and type investment, my approach was to aquire multiple properties overtime, fix up as needed then rent, and use the equity over time in my portfolio to expand on more property.  

Now he has been approached from a builder that loves his work and wants to hire him on his jobs.But my husband he said needed Workmans COmp and a general liability insurance.

I'm wondering if anyone has experienced an increase in seller motivation with tax season approaching?

I am not sure if that is accurate, it doesn't make sense, if you buy the house, and approach the city to pull the permit in good faith, then you shouldn't be fined.

It's a focused lending approach and also a product many banks do not want to entertain at the moment, the market is there to be created. 

I have had a couple ppl approach me to borrow money.

With this approach may not get the deal at first but if they fall out of escrow or start getting jerked around,  you will be the first call they make.   

Does that change my approach?

Just remember that the HAI had no business of approaching 2006-2007 levels if it weren't for NINJA loans.Rents in the prime SF housing market have soften.