Much of it is selection on your part and properly sourcing material (I can help with this) and labor.

I want to know are there any research materials or real estate journals I can get that will give me up to date information on trends or statistics on a given area ??? 

I think it was a combination of both spending too much for Contractor and level of materials.  

I was planning on just making draws for the material and other sub contractors (plumbing, elect, etc) and then taking the profits upon the sale of the house once complete. 

Would anyone be willing to share some of their rent-to-own specific marketing materials they use in direct mailer campaigns?

Calculate all of your material cost from actual prices online.

There was a pretty involved test that you had to take too so find some good study material and study up.  

Is she willing to do some construction work that would justify the cost of materials?

We were doing it for ourselves and saw a huge demand for better quality in better neighborhoods in Chicago so we put some marketing material together and here we are.  

If you have any further questions or if I am omitting any pertinent info let me know Covenants of concern:- "Proposed house design to be approved by seller"- "No stockpiling of materials outside of buildings"- "No in-home business allowed"- " Exterior of house, outbuildings and land shall be kept clean and orderly"     there are others but they are typical and acceptable.