Finance advice needed

I have found an individual who is in need of selling her house. She is very motivated to sell. The remainder on the mortgage is $16000 and the house is valued at $34000. Selling price $16000. With the planned improvements to the property, the value in the end will be $55000. It is a two bedroom, 1 bath on two lots. Currently it has all new plumbing.
Plan, part 1 – add addition that would double the size of the master bedroom, add a third bedroom and an attached 24’x30’ two car garage with 300 sq/ft loft storage.
Part 2 – split the lots and put a preconstructed or a kit home on the second lot. Total cost to put a house on this second lot is $35000 and the value in the end would be $50000.

Me – I have 10 years experiance in the construction, remodeling and maintenance industry. This would be my first real estate investment transaction. My credit score is 540 and improving (working very hard at this). Wichita, Ks area.

Problem – I have been researching hard money lenders. The ones that I have found require that each phase of the rehab be completed prior the release of funds. I do not have the available funds to prepay the rehab cost. I have not found any that would finace the second lot and it’s construction.

Does anyone have any suggestions on a means to an end?

Do you have a home of your own? Quite a few HML’s will cross collateralize, slap a mortgage that is both in 1st position on the purchase & 2nd position on your home.

No I don’t own my house. This would be my first real estate transaction. My future wife owns her home. However, that probably is not an option.