Both will likely require 10-20+% down and you'll have to cover costs along the way and request draws as work is complete.I have no direct experience with 203k FHA loans, but from researching them in detail 3-4 years ago there seemed to be a TON of hoops to jump through.  

Our bathroom is divided into two rooms. 

There are other fees as well, like draw inspection fees, additional appraisal at the end of construction, and construction fees or other fees a bank may charge, so you just shop around like you would a normal loan, but get familiar with all the different fees they charge; try to figure out how to compare apples to apples.I know nothing about San Antonio, but it sounds like you've done a good job finding a contractor.  

They are easy to install and can be wired using the same connection a regular outlet wire ( they draw less power but put out a lot of heat).

I would recommend either hooking up with another local wholesaler in your market at your REI meetings and seeing if they will let you use their contract or pay a lawyer to draw you one up. 

They quoted fees which are consistent with an attorney drawing up a contract.

 $165 x 12 = $1,980 divided by initial cash outlay of $21,250 down payment = 9.3% return.Is this decent for California real estate, albeit in Bakersfield?  

Just my opinion but a lot that was built was thrown up just good enough to get a draw so quality is suspect. 

You draw up a separate contract with said family member/individual for a return on the money at X percent, and the family member/individual "gifts" you the cash.

Remove dividing wall between kitchen and dining room. 4.