To Find a house on the beach you will be looking at paying over a million. 

And then I'm keeping the smaller ones and doing some bigger ones (3bedroom 2,000 to 2,400 sq ft) that will remain as holds.Keep in mind that as a builder my cost basis is better than people paying retail. 

Are you at the lowest price where you can pay the mtgs off?

Now you need to figure out how to find deals and pay for them.

We are projecting to pay taxes on $1,500,000 for this year and $2,400,000 next year.

Thus, I'm trying to find a convenient way to accept payments and transfer the payments to pay the mortgage. 

For DSCR, a 3 yr prepayment penalty and paying 1-1.5 points will put you pari passu with Conventional products right now for the most part. 

He has now asked me to pay the contractors for the first stage, about 24 lots, for dirtwork, sewage, roads, curbs, electric in exchange for some of the lots.

And in your market the lot costs are so low you need to pay cash for them and may still need more equity/cash.. in higher priced markets were the lot cost might be 40 to 50% of the total cost to build you can get a land advance but your still going to need equity/cash to do those as well.so thats your mission find a captial partner.. or put a syndication together to raise the money and partner to build out the homes.. really going to depend on what kind fo NET NET NET profit is on each home after land a build costs. 

Many people forget to include a CapEx fund, Property taxes, and even the amount of Income Tax you'll pay on your monthly income.