Or are there other methods you’d recommend that could align better with my goals?

I have little confidence in turnkey providers, deals are already hard to come by, if they take another 20% cut before.. much better to buy a property from an owner that is in good condition.

MUCHHHH better and of course that leaves us with plenty of room to pay the mortgage payment so the lender is happy.Btw, I just wrote the Co-Living book for BP that comes out in Spring, you can sign up for it here!

Sometimes making a smaller profit and providing value is far better than holding out for a bigger payday on a bad deal, I like that.

You never know who is on a similar path, has a similar mindset, or just believes in you and your goal for a better life for the family.All the best!

I figured what better place than the bigger pockets forum to ask if maybe I'm not thinking of all my options.

If not, then the path of least resistance is to simply adjust your vision so it fits better into the lot, as-is. :) A zoning change can take up to 6 months, approval isn't guaranteed (despite Aldermanic support), and potentially cost a lot of money (architectural site / floor plans & dimensioned elevations, zoning attorney, holding costs, etc.) 

As you gather all this information, I would continue bettering the process and continuing to buy deals.

MUCH better to have them sell and give you the cash instead. 

I'm happy I bought this second one, but at the end of the day the first was still a better deal.