And without cash flow lending options also become limited. 

🤷🏽‍♀️✨I typically wouldn't reveal the address for obvious reasons but in this case, I didn't have many options since I only have one interested buyer (good or bad idea)?

I'm desperately searching for a financing option for my spec homes that will give me better terms than the 10-12% interest plus $10k closing costs that my current HML is giving me.I tried doing buyer-financed, but they haven't been selling very well (although I really haven't waited long, I'm just impatient).

I'd also restate to them that you are not going to involve yourself directly since that is their role, but that from her email it sounds like allowing her to early terminate with no penalty IF it is returned in good condition may be the best option.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

I would go to an insurance broker and see what options they have.

I just saw the part about FHA not being an option. 

If not, are there non-construction options that would be a better return on investment?

So there are several good options here in the Ohio market. 

So I plan on going with the FHA 3.5% down and hopefully going for something in the 3-400k range in a neighborhood like back of the yards, mt greenwood, south shore but also open to other options.