Getting a loan to payoff another loan with a lower interest rate doesn't make any sense. we do private lending and can get double digits returns consistently.

Overall it is still a very good city to invest with solid returns.

What happens to the 'comparable value' if the area is uninhabitable or a community that won't return for years? 

In return, they will be motivated to get a job and pay back every dime owed while lavishing you with praise.

We are getting a terrible return on our equity but I guess that happens when you are hovering around a 50% global LTV. 

As I invested a few years back, my returns have been pretty good with cashflow and appreciation. 

Who cares about lifetime interest costs, except to the extent you can easily lower them (refinance to a lower interest rate) to increase your cashflow.

If I ever run low on reserves, I can easily transfer funds from my personal to rental account.

Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.

If they are professional, they can explain this quickly and easily.