You may also want to look into 2-4 units as those are the easiest to finance and help you grow faster.

So now you need a development loan once you have your plans approved.. most folks that do land try for owner financing while they get approvals then go for 3p loan once you have an approved project or JV with cash partners.. thats what I do I am a JV cash partner no loans I dont need loans to do these land deals..

Experienced developers, could you tell me how the process/financing works?

How did you finance this deal?

He wanted it all sold as a single package with no owner financing.  

The numbers look about equal either way except the loan costs would be greater having to finance twice essentially.

For funding, explore options like FHA loans, personal savings, or creative financing, and focus on New Jersey markets that align with your goals, such as Newark for rentals or commuter towns for house hacking.

I understand the crime concerns, but why do you think traditional financing is risky?

One of my wholesale lenders used to be willing to finance these, I can't remember the CLTV requirement of the top.

I can see the OP giving this a shot.. but it is risky he could end up making a few bucks and getting experience might just break even or he could take a loss.. that margin is very thin in markets that are not selling as soon as you get CO  thats been one reason we have been profitable very few homes have been carried past CO so financing cost are at a minimum.. you hold a spec home 6 months past Co and every month your losing money you will not recover.