You are in a strong negotiating position with them. 

If rental demand is strong in your market, this may not be as much of a problem. 

I can do the project in phases, but I am in for quite a bit already, the land acquisition, engineering, architecture, horizontal construction for utilities, water retention and so on.  

Leveraging your money (20% down but controlling 100% of the asset) will get you there much faster and the risk is pretty low if you follow some basic rules (know how to calculate cash flow, buy smart, maintain a reserve, have strong policies and procedures in place for renters, know your laws, etc.)

As long as your tenant has a history of strong employment and no evictions, with a decent credit score, you'll likely be okay.

Simultaneously, you want to look for good contractors in all areas of renovations to keep your contractor pipeline strong.

We have a relatively strong income coming in from our full time gig and it's time to let our money make more money.We were initially looking at single family residentials in our area, and lost 2 offers we put in, because the money wasn't right otherwise, which we are totally OK with.

Line of CreditPros: Reevaluated every 2 years, extra payments can increase line (can set up sweep account), mortgage payments stay lower if line isn't utilized, keeps strong relationship, can be everlasting source of cash.                             

For an appreciation play I think it's still a very strong market (probably the strongest of those mentioned), but if you're looking for immediate turn-key cash flow you can probably strike it off the list.

Between permits, architecture, engineer, and other fees, you are most likely looking at at least $100,000 before you even get started (depending on what you build).