Category 1 is a sub that regularly does jobs for other GCs and has a number of employees. 

will it work as a regular traditional mortgage?

Interacting with agents and clients alike cultivated a feeling in me that said "You should be doing more to help people make sound home purchase decisions."  

Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum.

If you are doing a value add, you can refinance into a regular investment loan which wouldn't need you to look for a "loophole"If you are trying to get the lowest possible rates, you are probably a little late.

I would say the best thing you could do is just stop in at the bank/credit union you regularly bank with (our regular credit union didn’t have the Absolute lowest rate but the convenience of having money available in the same institution made it worth it for us) - just walk in and say “I would like to talk to someone about a heloc”.

With BRRRR, we´ve regularly replenished our HELOC so that we can continue investing.

What are general added costs compared to a regular closing?

IE rent to a tenant for >12 mo,  dating before marriage, no late payments then with a down paymetn (long story here)  I'll sell on either a contract for deed (typically mobile homes on land) or a note and mortgage (regular nicer houses). 

It is regularly ranked as one of the safest countries in Europe and the world.https://listovative.com/top-12-safest-countries-in-the-world-today/https://www.numbeo.com/crime/in/Tbilisi5.