I have 2 vacant lots. Sell or Build?

[Walter Hoffmann]

I have Two .25 Acre lots in East Central Florida. Lots are adjacent.. Total .50 Acre.

My original intent was to build my personal home on this land, but I decided to build in a different community.

I no longer need the lots, but wondering what I should do with them. 

All of my capital is tied up in 401K ( I could pull 100K without penalty)

OR 

I could get a HELOC on my current home for 100 K.

My question is:

1. Should I wait and sell the lots later for profit? Will need to pay taxes of $550 yr until sold. 

2. Build and collect rent? Would Need to use 401 or HELOC for down payment approx 20% of $200,000 (40K) + Mortage the remainder of the balance.

3. Use $100K HELOC + $100K 401K and pay cash for the new home for rental.

4. Sell the lots today and break even on all expenses and taxes over the past few years.

Thanks!