Happy to chat...being a local GC takes out a lot of the risk of the biggest variable for most investors (unpredictable rehab costs) and also allows you to consider more options than the average investor, with your rehab costs being significantly lower.

Treating loan repayments like a non-negotiable expense while reinvesting property cash flow back into building equity.

I have two options.

In other words, an IRR calculation.Have you ever considered doing lease options?

Sit back , let him build the house , and when its done , say " Thanks " You should check with a local land attorney and see what your options are 

Investors are already on board with the options weve got, just shopping for the best option.

After 45 + years as a real estate investor, broker, lender, fund manager and syndicator, I’ve become aware that the “dream” of many investors and investor “hopefuls” is to be able to generate enough cash flow to live off their real estate holdings and accumulate enough wealth to make “work” optional.

To leverage the equity for financing my next deal, a second mortgage seems like a more cost-effective option.

The only other option I see is a short sale, if you don't need to purchase for a few years and don't mind a temporary credit hit to save the $60k.  

There are several options for skip tracing to find phone numbers and email addresses.