As others mentioned, you might want to talk to a private lender or try to get seller financing.

(If it's Self Storage - PM me or check out some of my other posts on Bigger Pockets for some more insight.)Think of the latter (passive investing) as being a private lender, Equity Investor, accredited investor or something of the sorts that gives you opportunity into a multitude of investment opportunities. 

Do you already have the deal and private raise for the 40% down?

I used Hard Money, and Private Money How did you add value to the deal?

I've always felt that wholesaling and private money are the best ways to get started.

I'm open to using a private money lender, however I also see intrinsic value in establishing a relationship with a local bank.  

Here are some of the numbers we were thinking about when considering this property.I don't have a lot of experience estimating construction costs, but it seems like what would be the most worthwhile for this property would be to rebuild into a SFH or a duplex the size and style of the neighboring properties which are estimated on redfin at $667K to $700K (those are 3br/2.5ba and 4br/2.5ba respectively). 

Private Money Loan How did you add value to the deal?

100% syndicated funds with our private equity partners in a Reg D 506B offering.

The other part is in your style choices and attention to detail.