A private lender is optimal (so you don't have to use all of your cash and can scale easier if desired) because you may not have to jump through as many hoops.

Without knowing KC, I would be hesitant because given the price and rent, I suspect it might be a less desirable area of town—again based on prices in completely unrelated cities.  

If you have no desire or ability to go to your own hundreds of thousands dollar investment, why even deal with it?

Usually you're going to have to invest some front-end money to survey it out and work with an engineer to figure out what's possible (generally the more lots the better) based on your existing access to infrastructure, the desirability of the area, zoning rules, etc. 

While the property's location was desirable, it was evident that the house had been neglected for several years.

You are also looking at your desired closing date and determining how much time the appraiser needs and anything else required prior to closing. 

Desirable location both locally and regionally.6.  

While the property's location was desirable, it was evident that the house had been neglected for several years.

Your path will likely get you to where you desire, it will just take a little time. 

From our experience, it is typically within a month of their desired move-in date.