Hard money is used because it is usually a much faster process & also can be used with properties that in the current condition won't qualify for traditional loans.65%-75% of ARV is the typical range but it varies lender to lender.Flippers will use hard money to acquire the property & fix it up to resell.Holders will use hard money to acquire quickly then switch to bank financing to keep it for a rental.There are so many different hard money lenders and guidelines. 

AS @Greg H. says sometimes you thank your lucky stars your offer wasn't accepted.I think an excellent strategy in the Permian basin is to continue to watch the market at this point or divert your attention to a more diverse (less petro dependent) area. 

In your case, you would be in that range, which is good.

Our rentals range from B to C class.

The real estate agent said that in order to find what we are looking for we would need to look in the 400k price range and have to put a minimum of 5% down.

Most are in the .5% to .8% range.

Given the debt free nature of those properties you've got a lot of possibilities You may want to test the market to see about a value add project in the low 1 million range. 

What i've learned that the quote ranges form 20k to 39k depending on, tear off, TPO cover up, TPO w/insulation 5 install. 

For this reason it should not play a big part in the decision making process.The question you want to ask is if you have a partial loss, range of $100k-$300k, what % of that claim do you want the insurance company to pay and what % are you willing to pay or have reserves for?  

In my $1200+month B+ rentals, I'm still in the 50% rule range most years.