That is crazy high occupancy but they cannot afford even the high occupancy options (in this case a 3BR unit).

Its not near any major cities where someone might look at it as a long play for path of progress.Another option might be to see if a solar farm or wind farm company might be interested once its clear cut. 

I’m particularly curious about:Financing Options: What types of loans or funding sources work best when scaling quickly?

FHA 203(k) Loan BasicsThe FHA 203(k) loan is an excellent option for financing a multifamily property (up to 4 units) with only 3.5% down.

We met ALL of the criteria for our private money lenders being 'Friends & Family' and they all have agreed to receive email communications from us.

Option 3: Find a better investment at this time.Stop thinking of yourself as a real estate investor and start thinking of yourself as a well rounded investor.Pay off your mortgage: Your money is not working for you when you spend it on liabilities like a personal residence.Buy Rentals with little/no cash flow: You are speculating what a rental will be worth in 20-30 years.

Sounds like you have some interesting options, and good reasons for both! 

If you ever need assistance or guidance with financing options for your project, feel free to reach out.

There just aren't a lot of options in my area, and my kids need to live close to their dad. 

One option I'm considering is adding the equivalent of a camelback, or second story over one side of the home, adding ~900-1000sqft and 2 or 3 bedrooms.