A few things:I would definitely check the zoning / future land use of the property.

Going into a war zone simply for cash flow is not worth it in any case.

Like other cities Indy doesn't have progressive zoning and permitting laws.

In Hawaii just have to look out for the lava zones 

Greensboro also recently approved some new ADU friendly zoning rules to encourage denser housing.

Once you pick up your drawings from Planning go back to the Permit Intake department for Zoning review and a possible approval.  

You skip much of the zoning, getting through city hall planning depts., etc. that you have to do for a larger tract you want to subdivide. 

I would think the biggest red flag would be asking for any fees other than an appraisal up front - would you agree?

Beyond removing the developable parcel from existing loan expect whomever finances the construction to want zoning, building permitting and utility connection approvals before the loan is originated (some will accept just zoning).

Those who make me think like Red here....