Help my strategy to buy my dream property

There will always be another property. Sounds like you are going to have to get very uncomfortable to make this happen.

Do you have a home now with a mortgage?

If so, sell it and buy / build on the new spot

If not, can you borrow from non traditional sources?

Lumber/materials costs are sky high right now.
Today’s dream isn’t necessarily tomorrow’s plan. Sounds like you’re saving and being prudent. Don’t jump the gun and leap at property now. When the time is right, look for land. You’re not ready to buy or build yet. Patience......

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Lumber/materials costs are sky high right now.

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Do they ever go down?

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Do you have a home now with a mortgage?

If so, sell it and buy / build on the new spot

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I do currently own a home.

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What about selling your house and living in a camper with your stuff in storage while you build

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This is kind of what my plan is with the 2 car garage. While the garage apartment won't be much bigger than the camper it would be bigger and it would be an expense that would be part of the house where a camper would just be an additional expense. Plus building the garage apartment would hopefully give me added equity when I start to build the home (plan on using equity from the land to help with down payment on house).

I avoided explaining everything in my initial post in fear people would see a wall of text and move on. So for those who are truly interested in helping here is my dilemma.

I currently only have the funds for a down payment on either the land (30%) or the house (20%), not both. The down payment would be in the neighborhood of 60K. The down payment needed for the house and land would be around 110K. I don't want to leverage myself to where I'm making my current mortgage payment and an additional land loan payment every month. So my idea was to get a construction loan to buy the land and build a 2 car garage with above apartment (which will be a detached 2 car garage beside my house when everything is completed). Doing this will require only 20% down instead of the 30% for the land and save me about 10k in cash on the down payment. I then can sell my current house and free up my monthly mortgage so I'm not paying for both. Once the garage is completed I would then roll the construction loan into a traditional loan. By now my land should have improved (water, power, and septic) and should appraise for more. I would then apply for a new construction loan using my land as collateral (I'm aware I still may need a little more cash to add to this) thus giving me the needed funds to start the building process. I know it's very complex but that is my current plan.

I truly understand you are trying to make it work. I've been there. My advice would be to wait. There is going to be more expense than you think with all the options you included.

If, in your mind, the property is absolutely can't miss, I would find some way to buy the property, stay in my current home, and continue to pay off the property.. This would allow construction cost to hopefully normalize a bit again. It would also allow you to fully leverage the land for the house down payment.

I say go for it. You’ve obviously given it a lot of thought and it’s important to you. There’s some risk involved but that’s life.

I agree...

Although building materials are higher, assuming you have good credit, your mortgage rate guarantees damn near free money.

Buy the property and build a nice 3 car garage or RV / boat house with an ADU on top for a place to live in the meantime and in-law suite it or rent it out eventually.

It is possible to do a one time close where you buy the lot and close on a construction loan together at 90% LTV. Find the right product for you. Your route of 2 separate loans is possible also, 2 one to build main house would be a renovation loan. Have to make sure both separate structures are connected under 1 meter to fit in Fannie Mae guidelines but that should be easy enough. Other than that, if you have a large enough relationship with your bank, you can almost do whatever you want..

Go ahead, just know what your fallback position is, which reads like you would be forced to sell something if you got into a bind. It's real estate! They're not making any more. Best wishes!