The prices can very wildly that is for sure, but I last saw this cost around 12k. 

We assist an investor there to do 1 flip a month.

While I know I can start a business making around $7k a month, my immediate goal is to house hack, and my concern is about qualifying for an FHA loan.Any insights you have on this would be greatly appreciated!

They plan to put it on the market within the next few months.

He assume each unit produces $200 per month cash flow - $9600 per year.   

Cost overruns, who comes up with the money, how is return effected? 

Lastly, this loan would need to be heavily dependent on the actual property instead of my tax returns as I just quit my job a few months back to go full-time into Real Estate.

The cost to repair it is close to the net annual income.

I'm also wondering if anybody knows the costs and rules for bringing in water and power to a piece of land in these areas, I know it's different for each property but is there any possible way to get estimates on bringing in water and power to a piece of land I want to purchase before actually buying the property so I can create a general budget for buikding a home.

So, you have to consider the range of outcomes, their cost, and their probability.