The loan was originally $25k.

Affordability..are you approved for a loan (what type) does lender know you are looking at condos?

The current property has a VA loan with a pretty great interest rate (2.375%). 

Most realtors can not get much loan due to nature of his un-predicable income as 1099 and have terrible credit score issues.

I have one myself that I funded after selling my SF home and once I set up my policy, I took a low, simple interest (5.5% for me) loan that I then used to purchase a 4 unit MF; now I'm using it to fund the renovations.

Based on your financial situation and goals, here are some personalized tips to kickstart your journey: Start by leveraging your finances with options like conventional loans, FHA loans, or commercial loans.

I am having trouble figuring out whether to go with a hard money lender, or a conventional loan for my first rental property.

Assemble a team of individuals who can split following responsibilities: contribute the earnest deposit money, guarantee the loan, find the deal/conduct the diligence, raise the capital and manage the building.

At $200+ a sqft plus a year of construction loans, I'm uncertain building in Phoenix area is a project I want to take on. 

We would like to own the property in an LLC so that the 4 kids can have 25% ownership each, and so 2 kids that have funds can loan $ to the LLC to facilitate the rebuild.