You still have some meat left in the deal if you can get that price, and it would give you about $14,000 back.

Smoking cigarettes is also quite legal, and also prohibited under the lease.I think your argument on unit count is a red herring here. 

I have found people willing to owner finance their house to me at a lower interest rate.

Cutting to the meat of the situation, I came across a property that looked like a fixer upper, typical investment grade property.

It’s all about finding a balance between purchase price, financing terms, and smart rental management so you’re not forced into the red.

It just so happens that a situation came up with family to do a private loan that will work for me at this time so I've paused working with Sal at the moment. 

Also, real builders/experienced developers will often have a true technician, i.e. a civil engineer, architect, real estate attorney et al at least glance at the property info to make sure there are no major red flags.

Qualify the contractor and highlight the benefits of working together which would include consistent work for them and regular paycheck.Personally, I'd buy the materials and never pay any money upfront, a "red flag" on its own.

I have a handful of leads that leave plenty of meat on the bone and I would like to make sure I am not missing anything.

They're definitely ahead of the curve, but Northwest Arkansas has very little red-tape when it comes to building.