The way I see it is 25% down out of state means $100k in down payment/closing cost to obtain turnkey property that gains equity similar to an IRA or 5% down managing a renovation in the property your living in which in turn pays yourself from the equity gains which allows you to get to multiple house hacks very fast. 

@Jake Hughes A 1031 exchange is a great way to indefinitely defer all of the capital gains taxes, and gain access to that tax to use over time for your own benefit.

This tells me two things: Obtaining a variance will be more difficult because there are already policy considerations in place intended to reduce density & (2) There is clearly an over supply of rental units in this area otherwise the overlay would not exist. 

What would be my best path going forward in the short term to obtain funding?

The 1031 exchange would allow you to indefinitely defer all of the capital gains taxes and use it to purchase multiple newer properties with lower capital expenditures, in a better market. 

Assuming the numbers are right and worth the investment my questions are: as a foreigner, am I able to obtain title to both land and the property that I build? 

Obtain insurance under the LLC.

I’m not only working on my case with these buyers and a DeKalb Pastor & Chaplain of DeKalb Sherriff Office on over 2.5M...but this now appears to be related to a HUGE Mortgage Fraud Criminal Ring here in Metro Atlanta with quite a few of confirmed fraudulent documents on many properties as more evidence shows up.Some of the names I have confirmed provided or created fraudulent bank statement, operating agreements and forged QCD docs to obtain mortgages illegally then allow them to foreclose.

Obtaining the V.A. loan is going to allow you to put more liquid cash toward renovations. 

Under current rules, NOLs can only be carried forward indefinitely (not carried back).Losses from stocks (Schedule D/Form 8949) follow different rules and cannot be mixed with Section 1231 losses.