Check in with @Joseph Chiofalo for some construction financing options.

Depending on what you are wanting long term the househack is a great option as well and depending on your situation you might be able to also keep your house in Salem and buy up here. 

Are there any options for lending I'm not aware of?

Lots of other EP options for building the box are available now.  

You can't count on believing that the family member will not produce a handwritten lease (real or not), or other paperwork & tactics, to throw a big old wrench in your initial/expected timeline.You CAN expect that if they see you as the big old rich/developer/bad guy enemy, they will do as much damage as they can, and drag their feet as long as possible.See if you can feel out what the relative actually wants/ needs, connect/come prepared with info on resources for local "housing help" options, etc (perhaps), and figure out what you can do to solve the problem (cash for keys with an incentive for quicker move out timeframe?

For example, if it was a ten year lease starting in 2017, then you would need to honor it through 2027 - if there was also tenant options to renew then those also would need to be required to be honored.

This might entail buying a single-family home with rental potential and living in one area while renting out the other units, or it could entail buying a multifamily property and living in one apartment while renting out the others.Financing Options: Look into traditional mortgages, FHA loans (for home hacking), and other inventive financing techniques.

Could you give us a realistic example of how you might structure an owner financed note based on the Henderson material?

Hi Yesenia, you'll likely want to determine your strategy and then confirm which financing option works best for that deal as there is a wide range of options out there.

Based on the 2 violations, is that enough for me to not renew his lease?