We worked out a deal where is we borrowed at 50% LTV we would not need to provide personal guarantees and the loan would be secured by the mortgaged property ONLY.  

Just a thought and a way to guarantee at least some rent each month. 

Hello Kyle,There are lots of things to consider, and there are lots of different types of Zoning for residential.For example you could be zoned residential, but the minimum lot size could be 1 acre, and you are buying 1 acre, in that case you wouldn't need a developer, you would just need a builder.For example, lets say you have 5 acres and a perfect rectangle property, that has an existing street that runs the long ways of the property so you won't have to put in any streets, you will simply need to get with a surveyor, figure out your minimum lot widths from zoning, and file with the municipality to get your property subdivided into lots.Once you have subdivided lots, you can either sell the lots outright to a builder, the cleanest transaction.Option 2, you could try to partner with a builder so you can split the profits, most builder's will want you to guarantee the loan, and still charge a build fee before profit splits.Option3, you can hire the builder, obtain the financing, and keep all the profits.Option 4, you could do any combination of 1,2, and 3. 

Because most bank financing requires personal guarantees, something strictly prohibited by the IRS in Internal Revenue Code Section 4975, therefore precluding you from using leverage.

Even though Cape Coral is your preferred area, Lehigh is going to be able to offer many more benefits such as better returns, lower pricing, it's guaranteed not to be in a flood zone, and there's a better inventory selectionHistorically, appreciation between these two markets has been very similar.

(As they obviously won’t sign a year long lease.) is September really that much better than October that you’d rather have  guaranteed vacancy?

A credit score of 523 is basically a guarantee that they do not pay their bills.

You could secure the loan / partnership with a 2nd lien against the property to help guarantee their position. 

It's a way to set cash aside and allow it to grow with guaranteed returns and you can borrow against it at a low interest rate at any time and it won't impact your credit score.

The lower of 4% or local CPI guarantees in the long term the existing tenant rents will not keep up with inflation.