Sounds like I've got the plan all laid out in front of me. 

If you want to develop it, I can refer you a lender that will lend on a completed subject to appraisal but you'll be limited if you just want it for the lot.If you simply want the land as part of your property, you have more options including a HELOC which you can still use for development down the road. 

@Matthew Creel sounds good.

It sounds like you're talking about living in one home and renting another structure that's on the same land?

@Chris Tessmann - I assume you had to complete a form for them for redemption?

@Khyree RandallI completely understand how frustrating it can be when the market feels overly competitive.

They one, aren't familiar with completing 203k loans or two..simply don't want to be bothered with them because they are more paperwork.  

Sounds like you found a profitable niche 

Sounding redundant here, but if you are ever in the Conroe area, there's a meetup every third Thursday of the month.

Sounds like I can safely write them off only after I purchase the rental and start the renovations to ultimately rent it out.