Looks like an outstanding read!

The funds are five months late from when we initially agreed to move forward and this entire time we have been paying interest on the outstanding balance of our loan.Our market is strong, we are in a good price range for the houses that we build, and our investor likes the project and has more than enough capital there fund it, but his lack of understanding of the way real estate development works, and fairly heavy handed control is going to cost us a lot more in the long run then we are comfortable with.I need advice as to where we should go for funding moving forward with the project.

The reason this trend tends to happen, from what I've seen, is because there is massive industry (jobs) in LA, and in the greater CV area there outstanding schools, safety, weather, and general quality of life.The SFV, however, has neither incredible industry/jobs nor incredible safety/schools/weather/QoL.

Higher risk of thing's going wrong. the other property seems like an outstanding, easy cash flowing property to hold onto

Would the bank take issue with all these outstanding problems on the property?

Question for all you cash buyers nation wide.

Long story short, I have a pretty good amount of equity in both properties, since the outstanding loans on each of them stand at about $185K and $210K, respectively. 

Being an auction property, I'll have a title search done for any outstanding liens.  

Many municipalities will tag the landlord for outstanding bills - learned that one the hard way!

So you can ask them if there is any outstanding maintenance that they've been concerned about.