Lots and lots of research.Price points also help, block quality, etc.

This is a self directed RRSP or TFSA account that allows you to lend your money out to people with the backing of their mortgage for a high interest rate. 1st, 2nd, 3rd mortgages, down payments, refinances, flipping or renovation money.

With a 7% interest rate and high HOA fees, the key is evaluating if your skills and investments can generate higher returns elsewhere.

At the numbers you are talking about and where the market is heading you could pick up some very high quality NNN national credit tenant properties as commercial continues to recover. 

I would protect myself and cut my losses so I was not looking over my shoulder or getting high blood pressure every time I heard a knock on the door (hoping it is not the FBI showing up to ask you some questions). 

Should I price the land 2 times above market value and offer a low interest rateORPrice the land at current market and use a very high rate?

Demand is very high, both for rentals as well as for sale and this is probably not going to change.

I don't do this for a living and have no real world experience, but at 40% down, even with a 7% int rate, that seems like a high monthly payment.

The barrier to entry seems high, and the price-to-rent ratio isn't very favorable.

Since the contributions have to come from the business income (PM biz) it’s not likely you’ll come close to taking advantage of the high contribution limits of a Solo 401k.