The site and neighborhood must be reasonably free from disturbing noises and reverberations and other dangers to the health, safety, and general welfare of the occupants

Dangerous dog... potentially dangerous dog... not involved in any way?

I'm not saying you would actually do any of these things, but I thought I'd point out the inherent dangers in the suggestions.As for what you could do in this situation, I would suggest marketing the house to investors as opposed to "first time home buyers", for several reasons. 

Leverage can be dangerous, particularly in a rising interest rate environment.

But I don't want to buy a tax lien -  I want to find a list of the people who are still tax delinquent a couple years later and are in danger of being foreclosed upon by the lien holder.  

These " get around the commission" schemes seem to take place in two kinds of distinctly different markets.

As resort and vacation communities have their own distinct markets and are separate from the norm.

But the big issue is that it’s simply too dangerous

I know enough to be VERY dangerous, hence my outreach to my much more experienced peers.A local builder in my area is looking for short term (12 month) financing to get a small housing project off the ground.

That sounds dangerous to me.