Alternatively, shop in areas where this vacation rental debauchle has already been completed and so you KNOW you can operate a vacation rental and won't be shut down anytime soon. 

You'll learn about myriad alternatives to buy&hold or flipping plus meet people who will gladly explain their specialties. 

Its a competitive market in Philly for MFHs, depending on the area, which is why a SFH could be a workable alternative.

I am interested in what types of alternative financing might work best in this type of scenario.  

@James Eschert, if you are like many who don't want to put their faith in the stock market and want to explore alternative investments such as rental properties, private lending, etc. then self-directed IRA or 401k will be a way to go.

Alternatively he suggested adding dirt to level out the space and then installing vapor barrier for $800.Anybody had experience with this before?  

This is the prescription phase, where you show the Seller that your service is the best available treatment, taking all the factors of the Seller's situation into consideration for their pain.

Beginning investors or operators will have better education alternatives than gurus and self dealing leaches to learn real estate.

I will be able to retire at that point and would like to have an alternate plan since I will be retiring young.I am seeking help from experienced investors on the site.  

Are there alternative courses of action that we could have taken?