AND there aren't many note buyers who will buy notes with large balances in the range you mention. 

Fast forward 2 years his landlord mentioned in passing he might sell the property; I was the first person on his mind.

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

I own units with no kitchen window and have had tenants mention that it just feels weird. 2.

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?

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.

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.