There is no sense in ruining goodwill over a trivial issue.

Am I correct in my understanding that after the house is built and a CO is issued, we can work with a traditional bank/lender to get the new home appraised and take out a traditional mortgage on the home for XX amount (the amount owed to HELOC and hard money lender)? 

Managing multiple properties does come with its own set of challenges, like juggling different maintenance issues, taxes, and possibly even varying market conditions if they're not all in the same area.Here's where your financial goals come into play: Are you looking for a more hands-on investment with potentially higher cash flow from the get-go?

The only issue I have with Dynasty is it has a lower per square foot coverage than the others, but I guess if you want something to last a long time its all about having a good "Mill Thickness" anyhow. 

The more we can share ideas that we come across the more it will allow ourselves and others to creatively put deals together that solve systemic issues.

Also you could potentially have recoverability issues down the road if it were to default

With option 3, if I waited a year between lot sales, would that satisfy any timeline or intent issues?

I believe the water issue is coming from a leaking hot water tank and moisture from a leaking sink that was never fixed. 

Also, check out the permitting too in those areas. 

-For instance, if you don't follow legal timelines, you can be fined treble damages:(The other potential issue is being able to PROVE to a judge that the tenant caused the damages you charge them for. - So, where is the tenant's MoveIn Checklist?