If you're using traditional financing on your primary residence, they're going to do another credit check on you just before closing.

Assume for a moment its close to max tax bracket ie. nearly 49% (Federal + State), roughly $17K.

As far as investing in the short term I feel investing close to home (50 mile radius) is the best option because you have a superior advantage by knowing your market.

Our rates are going up because they are closing coal fired power plants and going for more green energy , which costs more . much more .

Wanted to still be close to family but maintain a cheaper lifestyle, still have strong appreciation, and much better tenant/landlord laws, taxes, etc. 

Maybe lake visitors, but not really close to the lake. 

Total profit less closing costs and commissions will be about 42,500 each or 85k total.I would for sure get a construction loan, may be worth approaching 2 or 3 different banks and getting separate construction loans from different banks. 

Third, if they have $2bn of agreements (whatever that even means) why haven't they actually started building anything or even closed on the land.  

You won't find anything close to the Austin market with that budget. 

By negotiating a significant discount, buyers can secure great deals while meeting the seller's urgent need to close the sale.