Determine your maximum allowable offer (MAO) based on your investment criteria.

Both investments can offer tax benefits, but real estate typically has the edge.

So the question becomes based on their individual and personal tax situation what is the estimated tax burden they'd save? 

This will give you clarity on the numbers and help you determine how to structure an offer that works for both sides.

Our laws require us to offer a rental first come first served (first completed application that qualifies must be offered the unit).

The price paid is well below what we should have paid based on number of lots/homes/ that can be built.

If you’re passionate about windows and doors, you should naturally have plenty to share based on your expertise and the questions your customers ask.The main purpose of your blog should be to educate and provide value to potential customers.

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC (you can elect to have a LLC taxed, as a S Corporation which is a whole other conversation).If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years).

Before diving in to offer advice, I'd like to clarify a few things with you, if I may....You mention that you are going to live in the property while you renovate. 

A HELOC offers flexibility and lower interest rates, which can be ideal if you’re looking for short-term financing with lower payments during construction.