If I make full disclosure and provide the pamphlet, then it's the tenants choice to assume the risk... 

There choice not to pay is affecting others and needs to be taken care of.Hope you can get the issue worked out.

I don't know how to fund this endeavor or what the best choice would be for us.

Sometimes it can be beneficial to keep the tenants as well.

I've only made ONE poor choice over the years and nothing on paper will tell you the applicant has no social skills and can't get along with other tenants.

Another choice is to partner with some one for the 20%. 

Well unlike Account Closed  advice I don't think he saved you 25k in fees  LOLthis is quite simpleyou have the developer sell you the lots.. on  contract  .. the developer then subordinates his beneficial interest in said contracts to the Banks construction loan.. you are the owner you build and then sell.You can do a participation note with seller.. so they get a fixed number plus a little interest on the note and then a % of profit if you wish.now the only wrinkle will be if the construction lender will allow a junior loan on this and you having no real skin in the game.If the construction lender wants the lots as true equity.then you would need to for a JV agreement with developers portion the lots.. and what ever your business arrangement is.. if the developer has less than 20% interest in this newly formed LLC for these two build jobs.. then they will normally not be required to sign on the construction loans.Construction loans in today environment are very tough especially specs.My Portlandia bank will give me 12 specs and my Charleston bank will give me 6. so i can have 18 homes going at one time.  

I'm trying to figure out if it would be more beneficial to go that route or just buy a SFH to live in and later rent out when I move on.  

Between my kids ( who I have on Mondays, Tuesday, and every other Fri-Sun) and my current business, sometimes it is hard to make time to network in person at a set meeting....but I know it would be beneficial to do so.  

Once that is done, you have no choice but to vacate.