It helps to ensure that the project meets the necessary standards and regulations: A scope of work should include any necessary permits or approvals that are required for the project, as well as any relevant standards or regulations that must be followed.

To get an abandoned house - like the ones seen by the score throughout the 05 - up to section 8 standards for only a $20K investment (including taxes, insurance and other carrying costs) seems implausible to me. 

I use iaqualink and turn off the pump in the middle of the night (auto of course)  I do - I also have a standard pool pump that is on a fixed schedule that is off at night.

Plus, once you get licensed, you are held to a different standard regarding your knowledge and disclosures about real estate.

Commercial,  blanket, private, hard money and seller financed loans to me fall under different measurement metrics than standard GSE residential loans as to how overleveraged one is. 

I’m not sure why multiple lenders have told you that, but they definitely are the exception not the standard.

So far I'm leaning towards "standard rates".    

Entrepreneurial Profit - A bare bones, dollar for dollar, return on investment in a commercial rehab can be estimated by applying a standard 15% to 20% "entrepreneurial profit" to the cost basis of the deal ((purchase price + CapEx) * 1.15) Note, cost basis is generally just the purchase price plus the total budget, but it can be good to include the total cost of capital as well.

@Eli M. not in a standard property policy.You will want to connect with @Aaron DiCaprio as he has a product that offers this protection.

You can always use a DSCR loan or other standard mortgage.