I have also thought about selling it to fund other properties, but I would prefer to refinance.

That's why I think scraping is preferable.

On the topic of areas you should avoid, I would just say that’s personal preference.

Preferably a fixer upper? 

While SFH are king right now (it terms of renter preference and appreciation), you may be able to buy a quality 3-4plex with that much down if sold.

A few of the GCs I've spoken with are hooked on tech wealth and ignorance of home building, so they prefer to help these startup employees build their "forever" home (ie charge $700 per square foot). thanks!

This was just an exercise to see who prefers what and why...

I’m interested in using the preferred lender of the builder for a new construction duplex.

If so and you are willing to share, you can PM me back if you prefer. 

In my personal experience I can say without question I prefer having someone else manage the property.