Planning appropriate appraisals for community development concept

[Adam St.Marie]

Hello All,

We are getting our first house underway and I am looking for some feedback regarding appraisals. To explain the situation; we are hoping to develop neglected communities by lining up buyers for our homes, financing the projects and designing the properties with the contracted and lined up buyer. Our buyers have the same vision for community restoration and understand their commitment. So our aim is to create a team mentality with the buyers to pursue common vision. 

But the big question I am facing now is that in these communities the comparable properties are all over the place. This is in Zion, Illinois for those wondering. It is Lake County, but not really the part of it many people are drawn towards (possibly because the Cities building ordinances are very difficult to adhere to and have regulations that even the high end north shore Chicago cities don't implement.) Unfortunately this has led to the most run down and vacant houses North of Chicago, perhaps in the Chicagoland area period. I should probably verify that before saying it but from what I have heard this is true. (Someone feel free to correct me if I am mistaken.) 

If my buyer is going to get a conventional loan will I still have issues selling the home? Our profit margins are only 6% on the whole so we are not marking it up like crazy and the cost of building is itself at cost (which as a GC myself is not a good idea but this being the first home we are pursuing in this style I am willing to do what I need to get it off the ground and learn from it. Whether good or bad.)

If the conventional loan is not attainable due to lack of comparable properties, does anyone know of alternative solutions? We are willing to rent it/lease it if needed and the buyers are willing to do that as well as we have previously discussed in our contract. Would we be able to transfer title and put a mortgage on the home in time? This property and project was financed with cash if that may influence anyone's advice.

Thank you for the help!