The agreements tend to outline what is hoped for and expected but nothing is absolute for returns. 

There is one IRS-approved method for building or improving that uses 1031 funds.Construction 1031 Rules and Process In a nutshell, it goes like this:You go under contract to purchase the replacement lot in OklahomaA 1031 company creates a brand new LLC to act as holding company (Exchange Accommodation Titleholder)You enter into an agreement with 1031 company outlining your plans in the construction exchange You assign the purchase contract for the lot to the new LLCYou arrange financing for the LLC to purchase the lot (this loan can be from you, a third-party lender, or your 1031 sale proceeds)Loans to LLC is secured by Note and Deed of TrustLLC buys the lotNow the LLC can begin paying for improvements to construct the barn-condoDuring the building period, LLC rents back to you and makes you "Project Manager" to oversee the improvements.Once improvements are completed -- or at the end of your 180 days -- 1031 company assigns ownership of the LLC to you. 

I outline this process on my site if you have q's or just PM me.

The Cincinnati Board of Realtors, if not Ohio, has outlined things like having the agent stay outside, so as to help facilitate social distancing. 

@Sacha LaCossI know hindsight is 2020, and maybe I'm missing it in your post, but looking at the completion time details, it doesn't look like there were any outlined repercussions for the contractor if they did not finish on time.

I want to create a packet the outlines the benefits if they sell it and loan me the money or if they refinance and rent it out and loan me the money as a HELOC? 

I would assume a sole member LLCs with the same owner would not need one, but that is something to ask a local real estate attorney.Again, the structure I outlined, in my opinion, is overkill if you are talking a handful of single families. 

Good for outlining what to do but, as said above, doesn't help you get a deal in a fast market like Dallas.

While I would agree that parts of our system are used to keep people down (why is it a Freddie Mac SBA or commercial loan is non-recourse, but primary resident aren't), transferring into an LLC creates many issues, as outlined above.I wish you the best though. 

I have investigated both paths and have settled on the HELOC for now (for many of the same reasons you have outlined).