I have a background in design and hospitality so I pair that with my knowledge on the real estate side of things.

Then, the program is designed to help people get back on their feet not subsides their rent forever like other programs.

Yes I have answered this numerous times on other threads, but bullet points:1 - If you are considering a PM, now would be the time to hire as you can lean on them most likely.2 - Look for designers in the area. 

The American system is designed for choice, FREE choice. 

As you pay off the debt are you comfortable with $4M equity exposure within a single LLC?

(Noticed I didn't include architects in that list - from my experience most architects are great at building design but shouldn't try to do land planning.)If you have never done any development like this before than it would make sense to partner with someone who has (or flip it entirely) once you have a site plan of the property's potential.

As you get comfortable with the operation, maybe buy and rent a couple of those as STR/MTR/or LTR. 

Additionally, a fund allows for diversifying much quicker into a larger number of notes (and which also can be further diversified by geography, underlying real estate asset type, strategy etc.)The downside is that the investor has to feel comfortable vetting sponsors (and not everyone does).

Short sales by design are listed on MLS (always and always are arms length) and not below value, or the lender would more than likely decline any short sale offer.

just don't do a lease. as others have mentioned, this forces the buyer of the property to take over the lease (if its even allowed/ they qualify) and it certainly does make the property a little tougher to sell. i'm also doing a house hack, and here in CA, its made a world of difference for me. the bulk of our energy usage is in the summer when we want to run the a/c. my bill stays a constant $228/mo (i pocketed the tax credit and simply financed the panels after that grace period). instead of getting an $800 bill in the summer months, we run the a/c at a constant temperature 24/7 on auto, stay comfortable, and i typically get a little bit coming back at the end of the year. don't expect to pocket this "little bit back" by being conservative with your useage, it sort of is a use-it-or-lose-it situation... i think i got $54 back this year.