If I understand correctly you'd be purchasing the land, and improving it and splitting it into the appropriate "buildable lots". 

@Richard NguyenHere are some of the downsides of putting real estate into a self directed IRA or 401k.No tax deductions: You can’t claim deductions for property taxes, mortgage interest, depreciation, repairs, improvements and other property-related expenses.Property expenses: All expenses, repairs, and maintenance costs must be paid with IRA or 401k funds, and you must pay others to do repairs and manage the property.

These are typically located in lesser-known vacation rental markets, but have very strong fundamentals and great room for improvement. 

Ultimately I had a vision for how this particular home could easily be improved and rented for top market without much headache.How did you find this deal and how did you negotiate it?

You'll also want to consider if each lender provides funding for renovations/improvements.

This is more about riding the wave of a growing market.2.Forced Appreciation: Actively increasing a property’s value through strategic actions like renovations, raising rents, or improving operations.

Focus on value-add properties where improvements like renovations or better management can increase returns.

I bought a multifamily property that was undervalued, so working on renovations and improvements now.

Average maintenance and capital improvement: 350/month (4-5kyr).

Further, he can improve the real property to realize a higher sale price.