Speak with lenders early to understand your borrowing power, and explore multifamily properties to maximize your house-hacking potential.

The higher the cap rate, the more risk involved in the building. 

These structures are significantly more complicated than a typical 1031 Exchange structure and there are inherent risks involved in the transaction, some of which are discussed below.

Then there were some issues with the inspection report that ruined 3 contracts prior to me getting involved.

Are they given a JV-co-GP position for fundraising or will they be involved in the management of the property?

I recommend reviewing your local laws to understand the requirements involved.

While both involve finding and properly securing a site and bringing it to full entitlement, the ground-up process includes the land piece but gets way more involved and complex to execute.The full "Monty" for ground-up development needs to include financial literacy, an explanation of metrics, and how they work.

In the Bigger Pockets free book, "Real Estate Rewind", as one of the 11 co-authors I wrote about one such Tax Sale purchase and made money but not enough money to warrant the risk involved.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

I would love to connect and pick your brain a little more to understand structure of these loans!