As someone who was in your shoes as long time ago, with a newly minted finance degree, I can tell you to just keep going.

Not when the manager is doing 200+ hours of actual work.But the owner who's legitimately running the business?

In SFR, there is such demand from owner occupiers that the psf cost makes it such that you can build for less (with efficient design and the right dirt). 

Hey everyone —Curious to hear how other lenders and shop owners are structuring comp for their loan officers.

Or would the IRS treat this as a partial exchange due to the owner-occupied unit?

Local builders and national homebuilders sometimes joint-venture on land acquisitions too, especially if the path to 300–500 homes is realistic.If financing isn’t an option and the seller wants a fast close, you’ll need a partner with both capital and development capacity, not just private lenders.

You could rent out your house and buy a duplex owner occupied with the 25k and likely have money left over. 

There are times due to the area I am in that the owner would be better off doing a month-to-month lease and then when that property is ready to be sold it is better for the owner/buyer. 

Buy the land on seller financing with a recorded first (or second if seller insists) and explicit subordination/permission for a construction loan.

It's intended for non-owner occupied properties, so you might not qualify.Then are things like what we do.