So yes, you can IO then sell.

DR horton is building hundreds of homes and selling them.

Everyone here will try and sell you something based on what you're describing.

Second option, if it's even valid, I could build a new house in one of these new communities and then have the house for another few months and sell it (assuming that it would have increased in value) Any input to any of these two strategies would be highly appreciated!

I never plan to sell other than as a 1031, if that. 

Or, if that doesn't happen, the first one of you to sell a house will have the proceeds of that sale yanked from you by the court before you even touch them, even if it's ten years later. 

You are offering less than market value and then selling that contract at a higher value.

My realtor (and friend) owns a number of properties and recently offered to sell one to me through a lease purchase agreement.

You can get higher but the rates will be higher as well and it will be a lender that doesn't sell the loan to Fannie. 

@Dominick Tonnarini, The only issue with your plan is that you will have to pay a sizable tax on the sale of that property when you do sell.