If you are going to purchase the house as a primary residence you can easily allow them to rent-back for up to 60 days and if it's going to be a rental then they can just be your first tenants.

If they are professional, they can explain this quickly and easily.

@James M Fario a no money down deal sounds like a win!

This is a great example of how "saving" a little money by neglecting maintenance can cost you much more in the long run. If your rentals are well maintained, you'll get better-quality renters, they'll make more effort...

I think it's located in a great spot and would easily be rented.

LLCs do not protect very well because they can be pierced easily if it comes down to it.

I’ve decided to bite the bullet and build a house on the land to more easily access the equity.

Win win in my books.

If they are professional, they can explain this quickly and easily.

This is an example and needs to be modified but the goal here is if/when a contractor with no money invested drops the ball; you can easily and cleanly find another contractor to complete the project.