"you (a) may get that debt owed discharged, and'----Are you saying they can walk away without paying rent? 

@Patrick Philip Keep in mind banks will price there construction debt based on the Fed rate & expect to pay WSJ Prime +1/2 to 1 Point so 10% is not bad from an alternative lender at this time.

Do you understand your options regarding foreclosure if they stop paying?

Customers with good credit end up paying more when they use a "Broker" or Lender who are simply the "middle men".The other thing is there are new programs that only require 15% down for 2-4 units and almost all lenders and brokers require 20% to 25% or more for 2-4 unit multifamily investment purchases.

I advise clients NOT to buy empty lots, even ones right next to their properties and even if you're only paying a couple hundred bucks.The logic is pretty simple.

Secondly, GC's can generally get better pricing from suppliers, and unless you have a strong relationship with your subs, they may disappear for a higher paying job in the middle of your project.

You should not pay $99 for a lease agreement when you have a real estate agent who helped you buy this property.

I presume it would be advantageous for my in-laws to pay back that $250,000 in multi-year installments to limit their capital gains tax liability? 

Use one that has flexible pricing/spending options, memberships for discount pricing (these often pay for themselves with your first list). let me know if you need specific information about skip tracing

You'd most likely just pay a one time fee.