What we are saying is that the advertised facts of an unreliable tenant, plus a quit claim deed, plus an incredibly low asking price, all sum up to be a questionable set of circumstances that raise a lot of red flags for investors.

While the net income ends up the same it seems like it could cause some unforeseen issues. 

@Sanjay Gupta first, under no circumstances use that lender for investment property lending. 

The chances that an owner/agent to accepts a delayed option period is slim unless there are extenuating circumstances. 

Whether a promise with respect to the use of the land is real (runs with the land) as compared with personal depends upon the intent of the parties and the promise, to be determined in light of the circumstances. 

Each of those strategies is used under specific circumstances.

Mostly out of circumstance because I was having trouble finding a decent lawn service in the area and the one landscaper I could rely on could only do it once every 2 weeks but also because I was curious if I could cut costs.  

I am very excited to get going but want to make sure myself and my partner are protected in case something unforeseen happens. 

Nothing like time to change circumstances.

Considering the circumstances, I would say your strategy of holding raw land and then building is the way to go.