What would you save in captial gains on the $360k if you sold now?

Additionally, interest-bearing accounts may be mandated in certain jurisdictions, so it's important to check local regulations to ensure you're handling deposits correctly.

I was interested in something like owning a rental property as a way to generate some additional income. 

For example, I see newer investors attempting wholesaling or bird-dogging for other investors to generate additional income to invest.

If my business owner bank statements did not gain me an approval, I was going to go the hard money route.

If you paid under $230k, you’d save $30k in federal capital gains taxes and maybe another $15k or more in state income taxes.

However, there are risks, such as stricter lender requirements on the use and location of the property, and lenders may require you to prove that it is used primarily for personal vacations (not exclusively as a rental).Additionally, using it for short-term rentals could lead to changes in loan terms, and some lenders may not approve if they suspect the property is being rented out frequently.

In addition to checking the loan docs you should also check the zoning in this property.

This is an additional step that would not be present for developing a lot where you are adding value.  

Play dumb, ask questions, and try to gain as much info as possible before choosing a contractor.