Good suggestions above.I would research the labor cost of a total resanding and recoating. 

Opt 1) utilizing our savings in the brokerage account and emergency fund and pay for it all up front. 

What's the location, purchase price, expected Reno cost, ARV, etc.?  

(Lower interest rate, easier to qualify and lower costs.)

I'm in the San Francisco Bay Area and my FIRE number isn't $15k a month (with kid costs it is but I wouldn't be retiring early/quitting W2 job with child costs).I don't have much feedback on Michigan but I do agree with affordability with California and Florida and insurance costs, people may be moving to the Midwest. 

I talk to so many people who regret not getting a PM up front because they are having problems or high eviction rates doing it alone.

I was able to qualify for about $95k in 0% business credit cards (for 12 months), I then liquidated the cash and used a portion of that to obtain the hard money loan that covered the balance of the purchase cost.

Specifically, the cost to have it corrected is now a known material fact. 

How did you incorporate the funding fee PLUS the closing costs?

This can be very expensive and is usually the worst choice because you can't justify the cost.2.