As @Benjamin Aaker mentioned, a personal loan might be a better option.

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

What did the OP mention that would deemed as fraud?

@Annwar MataniA few comments that I don't think have been mentioned among all of the replies that are worth considering:1.

However, be cautious—newer “B” properties are sometimes built in “C” neighborhoods, so careful due diligence is required.Monroe: As mentioned earlier, Monroe strikes a balance, making it a versatile option for investors.Trends to WatchTransit-Oriented Development: Areas near light rail expansions are seeing significant value increases.Suburban Growth: The suburbs around Charlotte, including areas like Concord, Huntersville, and Monroe, are experiencing steady growth as people seek more affordable housing outside the city center.When investing in Charlotte, aligning your neighborhood choice with your goals is essential.

You don't mention if that's the case, but I thought I'd bring it up.You also won't be able to recognize any loss on the sale if that's the case.

You start by mentioning your age... you'd need everything to go just right for the rest of your life to make, best case, $400 or less additional each month net cash flow. 

It's a decent tool, but as Greg mentioned, I'd definitely plan for a worst case scenario and make sure it cash flows at the highest interest rate juuuust in case. 

You profit share with them for the first 10 deals (at the higher levels) because they really are right there with you holding your hand, and as I mentioned, doing three way calls, etc. every step of the way.  

He did mention that if the lot is facing a major road, they board would consider rezoning to MF, but since my lot is about 7 spaces into the neighborhood, it probably wouldn't be approved.