However, that doesn't mean that I think it's okay for this bank to continue to cost people undue amounts of due diligence money indefinitely. 

We really want this property, should we pay the expense and continue with the deal?

I feel really like a rookie trying to play in the NBA. 

As a newer investor, you can take the proceeds of your NOI to reinvest, and continue to grow your operations.But.....If this was the only method there would be no successful RE investors in Los Angeles, San Francisco and New York; which obviously isn't true.

Continue to educate yourself, stay committed, network2.

I'm used to having home inspector come in before signing contract so that I can continue to negotiate the terms of the contact.

Or should I continue with my plan of just flipping houses?

I continued to look for investors everywhere I went. at street fairs, through my small network of home owners and business people, hosted seminars on finding and doing fix and flips and built up a group of investors who encouraged me to find them development deals. 

They'll be willing to drop their price if it makes sense for them, especially if the property continues to sit on the market.

Loans comes into play in determining if you get to keep the proceeds from the sales.Let’s say you sell the property.