New construction. 

My look is from the lens of a build to rent developer or ground up construction not existing inventory but again, there will always be a competitive advantage to it.

The two existing LTR units (on my family’s property) were built 5–8 years ago at a cost of about $80,000 per unit, so I’m estimating a 20% increase in costs for the new builds.My plan is to use the equity in the land as the down payment for the construction loan, which I expect will make closing costs the primary upfront expense.

Just recently listened to a podcast on mid-term rentals specifically for traveling nurses but could also include corporate professionals or large-scale construction project workers.

I think you've forgotten about the concept of Constructive Receipt. 

There is an abnormally low amount of new construction occurring on the coast in comparison to the demand and the existing inventory can be quite dated, especially for those coming from areas like California.

Id keep looking if it was not an approved short sale ( even an approved short sale takes a very very long time and theres no guarantee that you will even close on the house after months of waiting). q1)There are plenty of non traditional lenders that could offer you construction financing if the numbers make sense but it will cost you with points and a higher rate.

.- Large remodels or construction projects (Live in Flip) can be self-managed, worked on directly, and the value add, after 2 years, is largely tax free up to certain limits. - Many areas around the country allow for ADU Construction - house-hackers enjoy similar benefits to remodeling projects by being naturally on-site for ADU construction. 

Also look at pricing softwares and adjust accordingly.

Cleaning up our work area, I remembered what my old co-worker once told me on the construction site "There are 3 ways a job gets done: One way in our head, another way planned out, and how the job actually goes."