But per lot it will cost roughly the following:$1,500 Electrical poles, meter installation $2,000 water taps and connections$5,000 grading and land prep$8,000 septic installation (assuming a 1:1 ratio of homes to 1000 gallon septics)$5,000 down payment on each home ($700-750 / thereafter per unit)$21,500 total set up x 17 = $365,000Ongoing expenses after development would look something this for POH model: $12,750 a month in mobile home mortgages (17 x 750 for PITI on each unit) $1,900 a month in land mortgage PITI (house) $3,000 a month landscaping$2,000 a month in reserve emergency fund$2,200 management$21,850 a month total expenses $262,200‬/yearOngoing incomes after development would look something this for POH model:$27,000/month ($1500 x 18 {17 mobile homes plus house})$324,000/year324k-262,2k = 61,800 net pre-tax profit or $5,150/month.Opportunities to reduce start up expenses: Bulk deals with the government or contractors for doing all the work at once (electrical, water, land grading, septic) Trade free rent for someone to mow and landscape (turning a $3k event into a $650 event every month).

We got Interior/Exterior Rehab Reserve of about $250K.

I have the reserves in place for the 5% down payment, 15K for emergencies, and have no debts! 

You still need the reserves for now, but you are in a good spot.Your real choice next is where to invest.

Figure out what each of you want and what reservations you both have and work through it.  

Once the tenant was identified, I was notified that they would be paying and signing the lease on August 2.I reached out to the property manager on August 2 via email to confirm whether they still planned to sign.

My intent is not to have the forum make a decision for me, rather to confirm that someone has actually hit $1mm mark in profits to be able to end the relationship.

In both scenarios, I will use the equity in my first rental via HELOC to either cover the conventional loan's down payment and fund the rehab or to fund the hard money down payment and meet the reserve capital requirements.

Should i refi my units which will kill my current cashflow and impact my reserves?

To add, it is not impossible to find a lender/bank to give you a mortgage when also loaning the down payment because, surprisingly, not all ask or confirm where the money came from.