Regarding cap ex, the place recently went through a custom remodel.

So if they say it needs a kitchen remodel, bathroom remodel, and a roof, but everything else is totally 100% awesome, then calculate all of those costs together, figure in that if it needs both a kitchen and bathroom remodel, it's likely some of the mechanicals are older and will need attention too, and if the roof needs done, you'll probably need to take a look at the siding, etc... and you can see how adding 30% makes sense.IF you do it that way, you'll get closer to the real costs.

The home requires quite a lot of work and remodeling, I haven't been able to calculate ARV just yet but I can kind of say around $20-30K.

If I go this route and just buy the cheap property for 30k how can find funding for the remodeling?

It's not impossible to find and follow the 1% rule, but it's very challenging overall, especially if your house isn't built like a "tank", and requires frequent repairs or remodeling from the start. 

However, we are finally getting started on organizing our remodel.

Personally did significant renovations of all types including plumbing, window, drywall, kitchen and bath remodeling, ect..

I have some mad skills regarding remodeling, built my own kitchen cabinets from scratch, completely wired my home after filing for permits and going through the proper channels for inspection. 

I was 20 and knew nothing of remodeling and had no money or credit to hire contractors to make the repairs.

ALong with the FHA, as i am sure you know, it is required to be owner occupied so my wife, 8 month old baby, and our dog intend to move into the 2br unit once remodeled for a year before moving and doing this again.