I've been in the commercial valuation industry for the past 5 years appraising office, industrial, and multifamily buildings nationally for institutional investors.

I would start by filing a Property Appraisal Protest Application with the County for each Lot.

I'd focus on entitlement, highest and best use, appraisal, rezoning, strategies that developers and land entitlement firms use like us to drive value to the land. there is strong interest in entitled land 

Generally its likely not going to qualify for DSCR if it has any rehab, typical rule of thumb is no more than $2,000 in "deferred maintenance" or needed fixes/rehab on the appraisal inspection for a DSCR qualification. 

Most of the other regular costs associated with the loan apply... appraisal, doc fees, county taxes, etc.  

An acquaintance of mine owns a 130 acre tract of land with 17 acres of highland appraised for a little over $1M on Crystal beach near Houston.

This is an email I just received from their rep:"The initial appraisal cost would be paid by ReadyCap but the expense would be taken from any from the sale/refinance and settlement to release the lien.The plan would be to determine the amount of equity based on the updated appraisal and first lien and then negotiate a settlement with you for the release of the lien.

I am aware of the inspection & appraisal costs, points & interest, that's not what I have a problem with.  

For 1031 exchange, let's say you buy a replacement property that appraises for much more than the purchase price.

BTW I am pretty bullish for Milwaukee long term for the next 10 years, to use a real estate analogy:  the city has already remodeled a lot (more to come), we just have not gotten that new appraisal yet!