I have 2 options:- finance the construction pre-selling the apt, and take my profits (expected to be around 700K pre-tax); or- finance the construction with a 6-7%/year loan (collateral = my house), keep the 10 units, and once the building is completed in 24 months, rent them for circa 180K/ year gross.

They don't mind higher vacancy rates then SFH might be an option.  

However based on these experiences still seem too risky versus just going after some of the options with RealCrowd that seem attractive and proven. 

In addition to conventional loans and FHA loans, if either you or your wife are veterans, the VA also has a rehab program.I'd be happy to discuss my rehab experience both as an investor and as a mortgage broker, and at least help you think through your options. 

Repurpose the money into a variety of different options.

I’ve realized I need more passive options, and have moved to a syndication and private lending.

For those navigating this evolving market, here are some critical takeaways:Price CompetitivelyCorrectly and competitively pricing your property is no longer optional—it’s essential.

If so, I'd consider those options first as they fit in the infinite banking concept.

After sitting vacant for a while I'm entertaining the option of converting to residential units.

I have a STR in the Sullivan County and have been looking for a cleaner but the options seems to be limited in this area.