So creditors have included debt, all debt, as a strike against one’s credit, limiting one’s ability to dig themselves into a debt grave, and yes to obtain another large loan, like a mortgage.

I'm confident in my ability to turn over tenants and deal with issues.

How would you approach this type of project if you have the ability to purchase but limited experience on actual development?

If no inventory buy out of County or state...keep in mind buying out of County 50 miles away or out of state opens up the ability to buy a Vacation home only 10% down. 

Some people do invest hoping for market appreciation, but while property value can come or go cash-flow once in your pocket is yours forever and you have the ability to use it to make more money!

., That's because the IRS advertises it as a "gift" to you - the ability to get the depreciation writeoff. 

So while this does not give me immediate access, I can have the money back in checking to cover a bill in 2 business days or less, which I have yet to have any unforeseen expense that needs paid faster than that.

For the municipality issuing permits they would only typically allow a homeowner to build for a primary residence of their own, BUT they have little ability to enforce that after the fact.

Buyers should have a strong investor focused lender and updated pre-qualification letter dated within 90 days and a team on the ground that can facilitate short term (sometimes virtual) showings and responsive/creative dealmaking ability.

The important part is ensuring you have the ability to refinance when a balloon comes due.