There may be some issues with this one...fyi.  

This, notwithstanding all the other issues that have been mentioned.Being innovative and a trailblazer is great but it has to make sense, because trying to reinvent the wheel is often the thing not to do.

The biggest issue, is what IF rates do not come down?

- At what rate atl RE you intending to issue your loan to the builder?

Did you pull the permit and still violate the issue that needed the variance? 

If the deal is good enough (i.e. has meat on the bones), investors usually have no issues obtaining financing via hard money, private money or other lending options.Your experience will likely be similar so I'd recommend spending time/effort on finding and negotiating deals.

And notice how the common expression is one of delight when they hear a "yes", because it is more rare in start-up. 

Price may be the biggest issue impacting your vacancy.

Fires aren't really an issue unless you live in the sticks.

Single might not have as much cash flow, but multi family properties create more potential for issues since there are likely multiples of everything (furnaces, hot water heaters etc)-what property class are you looking for.