I actually got caught up in the creative finance bubble of trying to lock up properties way over their value just because it had creative terms not realizing that if you were to buy a property at 120% of its value you will never be able to refi or sell without paying out of pocket.

@Zach Howard I am working on a how-to book on Creative Financing now (I am the author of BP's book on Mid Term Rentals) because when I was teaching myself I was frustrated at the lack of clear instruction.

If you don't want to finance the other projects then you should consider your opportunity costs.   

I can help with the financing portion, but I would love to help connect you with an outstanding relator in the area.

Id keep looking if it was not an approved short sale ( even an approved short sale takes a very very long time and theres no guarantee that you will even close on the house after months of waiting). q1)There are plenty of non traditional lenders that could offer you construction financing if the numbers make sense but it will cost you with points and a higher rate.

This is not yoursituation, but just to walk through the different thought processesin Holding/Selling that a friend of mine is going through.Helped my friend getinto the Self Storage business and walked him through the wholeprocess from evaluating the market, selecting a site, developing thesite, systems, financing, insurance, etc.

Sadly, FHA has a 2 year work history requirement, as does Conventional and USDA financing. 

I may start with house hacking to build confidence, take advantage of owners financing (this will be my first home), and to build my network first. 

You may be better off refinancing with a cash-out mortgage and then financing the new property.   

I have had sellers agreed to owner financing as well as sellers to take steep discounts, as well as sign a purchase and sales agreement with me on the spot.