If I understand correctly you'd be purchasing the land, and improving it and splitting it into the appropriate "buildable lots". 

Do I have better chances of getting money lend if I have a primary residency?

I think it's at least 50% chance that you'll lose money buying in an unknown inexpensive market.

@Richard NguyenHere are some of the downsides of putting real estate into a self directed IRA or 401k.No tax deductions: You can’t claim deductions for property taxes, mortgage interest, depreciation, repairs, improvements and other property-related expenses.Property expenses: All expenses, repairs, and maintenance costs must be paid with IRA or 401k funds, and you must pay others to do repairs and manage the property.

These are typically located in lesser-known vacation rental markets, but have very strong fundamentals and great room for improvement. 

This is more about riding the wave of a growing market.2.Forced Appreciation: Actively increasing a property’s value through strategic actions like renovations, raising rents, or improving operations.

Ultimately I had a vision for how this particular home could easily be improved and rented for top market without much headache.How did you find this deal and how did you negotiate it?

You'll also want to consider if each lender provides funding for renovations/improvements.

If you do not bid it as a full gut rehab including removing the floors and joists, good chance you can lose $.

But as I mentioned, IMO you dont loose a whole lot by having it and stand a chance to gain for little extra cost.