I would cash out refi with a 30 year fixed conventional mortgage at an LTV that I would be comfortable with (70% LTV in my market; I don't know anything about your market), then go buy another.  

Chad Clement , in order for people to answer, they would need to know the ARV, rehab amount and your desired profit.To answer your question about if this is typical, the answer is yes- or at least not uncommon.Many banks will give preference to owner occupants, even if their bids are slightly lower.Offer the highest number you are comfortable with after factoring in your desired profit and skip the contingencies if a hit market.

If you've done a lot of private party-to-party sales & feel comfortable with your own contract, I would at least call the title company you are planning to use, & ask them for the exact verbiage to use as the seller (trust & trustee).  

With that being said, if you really want someone local, then of course do what is comfortable for you as ultimately that is most important

Totally agree ... for me with leverage, it is not a question of yes or no, but more of what degree of leverage can the investment safely support and my wife and I (and other business partners if applicable) are personally comfortable with.

Nothing amazing, but definitely a comfortable first investment. 

Again, people thought I was crazy for leaving my job for the unknown.Looking back, I often tell my friends that if I had landed a great job out of school and been offered a good/stable salary with health care and retirement options I probably wouldn't have felt comfortable making the plunge into real estate.

They apparently feel comfortable letting your offer expire risk wise.

I've been looking for a property for the past couple of weeks and I figure we can comfortably afford a  20% down payment on a house worth $160k.  

not sure if i am comfortable with that sorry