Feel free to message me if you want to go over the no income options. 

Or is it a trimmed down agreement (option to purchase)?

They aren't actual incurred expenses and are not deductible.CASH FLOW vs NET INCOME:  There are three main sources of differences between your actual cash flow and your net income.  1) Mortgage Payments - Only the interest expense (and maybe mortgage insurance) is an expense and deductible. 

They likely do not have access to those easier sources of capital though because of their shady business history and practices.Good investors do not need your money or partnership.

I am wanting to build a spec house on it but am curious about financing options.

Higher taxes can eat into your profit, so do your homework upfront.Financing options.

Multifamily is optimal, but out of reach for many due to the price.Other options include doing a rent by the room situation.

We have reached out to the city and they have provided some information about grants but that seems extremely complex without much chance for success as we would be first timers.My question is what options are out there to help with this situation.

4) Legal Options: who told you that you can't sue the LLC owner?

Or perhaps you’ve found success with other strategies like lease options?