Numbers don't lie and in todays world I don't know any investor given the choice who would want there money tied up in a mortgage with this  as a viable alternative to have liquid damn cash.

We estimate the project will take less than 3 months to complete.I’m exploring alternative short-term financing solutions and would appreciate any advice or recommendations on options that might work well for this type of project.Thank you in advance for your insights and assistance!

Alternatively if they all love the deal, that's also likely a good sign.You can get a dog of a property in a crap neighborhood that will yield a 13.6% gross cap (not saying yours is), but that certainly doesn't tell the whole financial picture of how the asset will perform.

Looking at the places, they are all the "weird" kind or have some kind of alternative building practice.

This means that someone who makes $43,000/year would now eligible to buy this room condo, and have access to a vehicle through which to build equity in an asset as an alternative to paying rent. 

Before I order a second appraisal, I would investigate an alternative lender.  

That said, I'm grateful for the alternatives you present--you're keeping the bottom line in mind, so I appreciate your help in exploring options that achieve the bottom line for the investors. 

I’m also open to alternative strategies, such as private lending or passive investments in funds, to diversify and balance risk.Does this phased approach seem reasonable given the higher HELOC rate?

However, alternatives like a Self-Directed IRA (SDIRA), a 60-Day Rollover, or a Roth IRA Conversion can help you avoid penalties.A SDIRA allows you to invest directly in real estate while maintaining the tax advantages of your IRA.

And alternating Fridays 11am-1pm.