So I know selling one of the two houses wouldn’t cover all the cost but given that I plan to live in one of the houses and take a conventional loan out on it when it’s done.

I'm currently exploring loan options that would fund both the purchase and rehab costs.

It is no different than a loan company requiring insurance on your house or car.As @Dawn Brenengen said, require that they put you down as additional insured.

Could limit access to favorable loans and insurance on a new primary residence in the future.

Bank and credit union loans are generally defined as “portfolio lenders,” or lenders that hold the loans on their balance sheets.

What kind of loans are available for someone who doesn’t have a 2-year work history?

You need a non-recourse loan (conventional is prohibited with IRAs).

A construction loan would be the route to go to get the lowest interest rate.

One thing I see as a lender is that any kind of owner-occupied loan with a low down payment will not allow you to build enough equity to refinance out of it, even when you are forcing equity with a rehab.

If they fall enough, maybe it is worth a full refi to consolidate.