I agree with @Ron S., if you can switch to a 203k or a conventional renovation loan (is it Homestyle?)

.: My wife will definitely agree with Plan A, may or may not agree with Plan B, definitely reject Plan C.

I know the lender sometimes puts there own name to the deed to make sure collateral is in place as quickly as possible... and yes I agree not losing the deposit is critical for repeat business...   

I agree the smell factor might not be as intense as burn/smoke but I'm unsure of the cumulative effect.

The bank should provide some guidelines on that.All parties (contractor, bank, and homeowner) should draft the scope of work to be performed in as much detail as possible (example this type of carpet, this type of doors, etc.)Once the scope is agreed upon, the contractor is to provide you an estimate and a schedule (consider using a guaranteed maximum price type contract, this basically holds the GC to a ceiling). 

Courtnay, I agree with Mitch that it is easier to approach investing and all of its components by essentially outsourcing the needed activities until you can do them as well or less expensively. 

/warranty deed (good)) and then warranty deed myself on the title for at least 6 months and then remove her the same way and then get an equity loan for the agreed purchase price as well as rehab funds.

So in that term, the seller agreed to hold certain amount of money for problem that needed to be fixed in escrow account after closing ( i think they have to put certain percentages higher than the bid from verified contractor).

I would agree with Aaron that it is really a street to street call.

Account Closed I wouldn't necessarily agree with that.