You will definitely need a professional help. 

If I choose to wait the 30 days, I've already qualified for a 30-yr. fixed with cash-out up to 75% LTV @ 5.25%  Ultimately, this might be the best bet, but I'm exploring other creative opportunities.  

I don't know what I could have done differently - I asked explicitly if that's the final cost no matter what he finds and he did say yes, I have proof of that, it's a bit worrysome that I cannot rely on what a professional tells me.

after calling them literally every day (not an exaggeration) for an update, i resorted to calling the service rep that came out directly and only with him on the line and three-way calling HMS with me on the line using his service professional portal did we get the answer that they claimed they completed the replacement and closed the file. 

Is it possible to be a Private Lender professionally?

@Paul Sandhu I would suggest you hire a professional company to do it.

Lots of not-so-professional work happening.

If I were to proceed with that purchase, I would still get a professional inspection. 

Because the demand for it will be low.Likewise you can have an older building that needs work, but in a GREAT neighborhood where everything has been rehabbed, and the area residents are all executive level professionals, and it can make your property a class B or A property.

You are wise to seek out professional assistance, especially with the house-hack.