Private Lenders tend to be a short term loan of about 12 months so you will have to refinance for a long term loan after all construction is done and hopefully that increases the value.Those two will usually charge you more interest for a loan but it usually does not kill a project. 

I am not well schooled in the financial world and was wondering if this would be a good option to increase net worth and decrease taxes.Looking for advice.

State and local governments have been significantly increasing taxes on rental income over the last decade by adding or increasing sales tax on rental income, Forcing all real estate owners to get liscenses to be able to rent properties, increased government inspections of properties prior to new tenants moving in, increased property taxes, etc.

Seems to make sense since there are consistently people rotating through that are looking to rent. 

Have you ever had a Real Estate investing "epiphany" or idea that you shared with someone only to have them shoot holes in it? What was it? We're they right?

Once I am able to source a potential deal, I would work with a firm to perform the financial analysis such as creating the pro forma, underwriting financial models, partnership structuring, etc. in order to increase credibility on the financial side.Next is when I would be working with a legal team to draft the PPM (506c), Subscription Agreement, Questionnaire, and so forth.

I have had the problem of not being able to pull capital out of a deal that I had massively increased the value of.

On the other hand, the location of this property has seen very consistent appreciation and over the long-term is highly likely to continue going up in value at a higher rate than most other areas of the country.

You could upgrade 50 more and increase your income by $2500/month."

I use Ally (not paid to say this) and lately with the way rates have been moving, they've increased the rate for me at least once a month since January (1.65%).