Quote from @Elias Halvorson: You probably can still do an DSCR, with a letter of explanation on the lates if you wanted something now, otherwise you can wait 5-7 months until those lates are no longer in the past 12 months and do a conventional loan  with better terms.  

I saw the post wasn't long ago but curious where you are now at with the land.  

Interest is long term appreciation though some sort of positive cash flow would be ideal.thanks so much !!

So we are not in agreement.I sent this to my tax accountant https://www.investopedia.com/terms/p/passiveincome.asp.She sent the IRS link to me https://www.irs.gov/pub/irs-pdf/p925.pdfI wonder how your tax accountant treat your private lending interest?

Watch out for default terms, due-on-sale clauses, and negotiate prepayment penalties if applicable.

I would be inclined to work with them on this as long as it was a short visit. 

Am I missing something or is long term rental the better option here?

Investors buy here because of strong jobs, strong rent growth, strong appreciation and the future cash flow but honestly many of my clients are playing the long buy and hold, appreciation game.

They normally don't last long.

It should not take 30 to 40 days to close a sale, it's the computer age and now thar they have ingrained themselves into the process so much they are feel they can take however long they want and we have let them.