A master lease with an option could be one legal construct to fit what you need yet not be too involved in the property directly.I think the biggest issue will be for you to clarify in your mind the sorts of deals that would make sense.

I am searching for investors wanting new construction homes in the GO Zone near Biloxi, Mississippi.

If you do not need a loan that will be insured by FHA or sold into a FHA mortgage pool its compliance is much less of an issue.If you own a home and have a local banking relationship a local bank might be able to fund a construction loan for the purchase and repairs.

The key is to have the proper team in place such as a title/escrow company familiar and capable of back to back closings, an attorney, to properly advise you and construct your documents for full legal disclosures and verbiage in your documents, and a quality transactional funder.With all of that, you can successfully complete short sale transactions.

I don't doubt your experience in construction/rehabbing because you may be seasoned, but I think this might be a potential flip nightmare.That is a great price for a house that has had so much work already, but it doesn't make sense to me.

I'm on the fringe of alot of new construction.

Can you imagine how many foreclosures there would be if every lender foreclosed on every house with a construction vehicle in the driveway, and running a small business from home?

Get out your calculator and pencil it out.The cost of new construction vs existing housing varies from area to area.Mike makes a very good point, though.

You must speak that seller's language in order to effectively communicate your solutions, construct and present offers ,close deals and make money.The sellers that you are going to come across will come in all kinds of different shapes, sizes and personalities.

Lenders do not fund construction projects if they do not see clear exits.