Then they sell as many as they can at top dollar until something changes, then they start discounting and starting 'Fire sales" which hurts the previously purchased homes since the last few get sold for less.

Since you don't state what your area of interest is, you are not likely to get a response. ;-) 

Take this far enough and you get Oakland or San Francisco.

I cannot get past having ~$500k invested to get $1800/month rent.  

If after adding the additional monthly recurring costs (electricity, gas, water, internet, insurance, lawn care, snow plowing, etc.) to the standard long-term costs (Mortgage, taxes, regular insurance, etc.) the property won't net at least $100 if I can get the average rent I see on FF for that area, then the property isn't worth more investigation.

Then when it comes time to legalize, looking to get everything approved at once, with the data point that it was built to code in the past.

Can I do an LLC assignment closing to on my wholesale deals to avoid having to get a license?  

Get approved for construction loan (This is normally a loan at an 80% LTV, right)3.

The broker I'm working with, mentioned that any company can cancel any policy within 30 days of approval and that any premiums paid will be refunded, but my main concern is to get a policy in place for this property.

We also had to get a lease signed on our old home before we closed on the house, but we had everything set up and ready to list as soon as we got under contract.