In my experience strictly med buildings are generally developed in the same way as part of a campus or off the path a bit from the main retail corridor, so it really is only suited for that use. 

If so you could have your agent research how to file a complaint or suit to get an order to release the funds.

Pay attention to whether the room is a primary suite (your own bathroom) or shared bathroom, how many roommates, etc. as those would factor in to how much someone would be willing to pay.

We have filed for eviction and the tenant has filed a law suit claiming false allegations.

Rise up the ranks to a c suite position.  

What types of real estate projects are best suited for private lending?

The experience is working out pretty well.I think their goal is to be your one-stop-shop for the whole process and that will suit me going forward. 

I love when I find a property with a big mortgage, the home owner walks away voluntarily and I get the mortgage removed with my quiet title suit.   

Alternative strategies: Are there techniques or approaches better suited to markets like this where rents are so low relative to property prices?

The more round trips you complete, particularly in markets you work in repeatedly, the easier it will become because you become familiar with the traps and also get a better feel for what design firms are best suited for the particular project.