They want to see if they can buy via contract before going to the bank. 

How bout this, rather than sinking so much money into Dead Equity, look at paying off other NON tax deductible debt, invest it in retirement savings like a Roth IRA, Annuity, Loan the money out thru a company like Prosper or simply put that money in the bank and let it subsidize your monthly nut.   

Best term sheet from bank puts cash flow at about $190,000 annually for first five years.

Yes, the property was foreclosed on 9 years ago, and since then has been purchased twice (we did some digging online to see what happened since the bank foreclosed on it.

I hear there are some banks that do 90% refinancing for VA loans.

Should be able to do them at the same time if you use one bank.

I thought many banks would refinance for the purchase price AND rehab...as long as it is 70-75% of the LTV. 

I also know that many people did not trust banks at the time, because they were all run by white people. 

If you don't have the money in the bank, don't do the deal.

How do you track down a GC that can provide a statement of  scope of work needed for the bank and how to present that need to the GC.