My risk tolerance is extremely high, so once a property fits into my criteria I find a way to make it happen through the leverage of my own properties/HELOC.

Your ability to solve the sellers problem could score you amazing terms that make the deal extremely lucrative for both you & the seller.Subject-To financing requires you to take over the existing mortgage on the property with the same interest rate and amortization, but could result in the lender wanting all of their money when the title changes hands.

(and ill even take the more generous extremes of your numbers) You said you have $230,000 to spend. 230,000 - 45,000 for the land = 185,000 left to work with. 185,000 / 1800 square feet = $103 per square foot to build this new house! 

We are taking everything into consideration before moving forward and Bigger Pockets so far has been EXTREMELY helpful. 

@Brian PloszayNo need to apologise your input is extremely helpful.

With extremely high property taxes, unfriendly landlord laws, and expensive housing, I think investing somewhere else makes sense.

I would consider stretching that out to every day for a week, maybe blast some really loud metal, heat fish in the microwave, constantly talk to her about your eviction process, or whatever you can to annoy her and scare her off.

One of my projects, I hired a contractor who handled almost everything after the plans were approved, and I have also done a few others where I was extremely hands on.

Unless you know a licensed contractor extremely well, have supplies already or decide to explore alternative methods for getting it done, my guess is your renovation expenses will be well north of 40k. 

Most lenders won’t do it and the ones that do will charge extremely high rates.