So, it could be quite difficult to find contractors in your area with verified 203k experience or ones that have been properly educated on the 203k AND have the financials necessary to start the project with no upfront money and be able to sustain the cost of the project throughout the draw/inspection process. 

My buying philosophy is to buy the most desirable assets I can afford which lowers turnover, draws the best tenants, protects cash-flow and yields good longterm appreciation.

Once you have a property for collateral, subsequent properties will be easier to finance.Another issue will be contract signing from afar.

But being "3 draws in and nobody stepping on site" will never happen.

Since I spend quite some time there, the area is important and ideally also some draws that also appeal to renters (golf, pool, amusement parks, etc.). * what areas can you recommend?

I have $250k to put into a multifamily deal) to the real (that deal looks good, let's draw up a contract for the $250k I'm willing to invest) you will actually need the real deal. 

Depending on the lender and contractor you may have to float upwards of 30% of the rehab cost for a few weeks until draws are finalized.

The empty corner lot can draw debris or hang out sessions with local teens.My biggest issue in the area is that rents are so low that stick build is not really worth the investment and construction loans aren't really an option since ARV is not going to be enough to justify the expense. 

Hopefully I learned my lesson (I have made this mistake before so maybe not).I am glad you are treating it as a learning experience, taking ownership of your role, not letting it turn you off to similar efforts and I suspect you will come out of this more capable of succeeding on subsequent rehabs.Good luck

This investor is claiming that the bank they are using for the construction loan is only wanting to pay out for the construction draws once each work phase is complete (understandable/normal), but are not willing to pay for the property acquisition itself.