There are two options I have offered and I want to get a check on here if I am off base with my offer or if I need to push harder.

Wanted to introduce myself.

I will likely get approval based on my zoning.

Free vs. membership based. 

However, this is not specific legal advice to you, just an opinion based on the circumstances described in this thread.  

In Texas we do not have real estate sales taxes but property taxes are high and also included in the proforma based on the 90 day holding period.4.

Down payment of $13K including reserves sounds pretty low to me . ( Based on Maryland )

It's called a payoff statementif it's a big lender you will not buy the loan as it will take forever, you are better just paying it off. you then can foreclose based on the total balance owed to you which is both loans and any accrued interest. regarding fixing property or selling as is, that really depends and needs to be evaluated on a case by case basis 

Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment. 

Purchase price: $160,000 I purchased a two story home by a military base from a family member for $160,000 but it is worth more.