This extra road frontage now also qualifies my property to be able to be legally converted into a triplex from a duplex.

If you're a PM, how would you handle this owner?

Here are some thoughts on your choices:401k Loan: This can be a good option since you're borrowing from yourself, but it comes with repayment risk, especially if you leave your job.

At a minimum,  you should understand what the current zoning is and what restrictions there are.As the post above mentioned reaching out or going in person to speak with the planning and zoning department will be very helpful. 

Hope this helps. 

Purchase price: $515,000 Cash invested: $960,000 Sale price: $1,850,000 New Construction development, What made you interested in investing in this type of deal?

What's even more frustrating than asking the IRS help desk, is asking a Turbo Tax "Tax Specialist".

@Kyle Knudsen, There's a couple reasons why this wont work unfortunately.1.

i'd pick a market close by, or that you have a personal connection to, or that you visit often.chasing cash flow by itself can lead to negative outcomes - for example, these investors bought in supposed "cash flow" markets:https://www.biggerpockets.com/forums/12/topics/1215726-break...https://www.biggerpockets.com/forums/963/topics/1195280-expe...https://www.biggerpockets.com/forums/48/topics/1137397-balti...hope this helps.

Hey Dominic, I have some good contacts to help you out.