Partnering up with a contractor on a new construction in SoCal

[Davon Lowery]

A contractor (plumber by trade), long time family friend and I have been discussing different REI projects that we might be able to work on together. He does my plumbing work so I am familiar with his quality of work.

A broker friend of his has as listing of undeveloped land here in south LA. Lot is approx. 7k sqft., double lot, 2 tax keys, but city said that we can merge them at closing.

Area is zones for SFR/duplex's and City says we can build 2 SFR's or 2 upstairs/downstairs duplex's on the lot after we merge them. I told my friend that I was inclined to build 2 SFR's, in that the SoCal market is extremely hot and I can imagine the bidding war when we finish. IMHO, I said that, I imagine we would need to keep them as rentals, if we do duplex's or flip them to another investor, which might delay the resale (I know not an absolutism but, again IMHO).

Naturally, we will need financing, what are some one the financing challenges do you imagine we will have. 

Ideas? Experiences? Lunch/Coffee?