I don't know that I'd feel comfortable carrying the mortgage of a SFH in a year, but I think that investing in a MFH might be a good option for me.

Our carrying costs on the home are $700.   

DO NOT HIRE THIS GUY for the following reasons:1) He "seems" to know his stuff.2) He's on pain meds - can have an addiction problem.3) The liability of him not carrying insurance. 4) Listen to your gut feeling - I think it's trying to tell you not to hire this guy.

The problem then becomes: you need to know how much those improvements will cost, how long it will take and what the carrying cost will be while it's done.

See if the current seller will carry the note and be the bank for you.

if you have NEVER done a build job or spec i think that financing will be your biggest hurdle.also your cash position is quite weak.. sometimes vertical lender will over look experience if you pay cash for the dirt.but leverage and no experience leads to no deal.. this would be a decent deal for a local builder given carrying cost sales costs etc etc.. how much they would cut you in for finding it and providing a little bit of cash is up to negotiation of course.

Have you asked the seller if they would the seller consider carrying a 2nd?

Yes, you will have to put 20-30% down (you can get creative and ask the seller you carry this portion if you don’t have it, ask friends and family, partner with someone, etc.) and your credit and DTI must meet the bank requirements. 

They covered everything but carrying costs. 

Here’s the numbers and plan 3/21800 sqft with unfinished basement Built 1980 Very desirable area in Vermont15 acres (subdividable) Comps $300-400Needs about 45k in repair I’ve got her talked down to 170k I really want to BRRRR this property.She owes 125k on current mortgage Would you -lease option (which she likes)Or -assume her mortgage and have owner carry the rest of the note?