That’s a pure cash flow play - monthly interest payments hitting your bank account is a great feeling!

Is there a bank or credit union that offer a loan for it?

The few lenders I've reached out to in my area (local banks, credit unions, etc.) are only working with primary residence for Helocs or Cash Out refi.

Private lender will wire ~80% to my business bank account shortly before close.

If you have a 12-month history of the property's performance, you may be able to get some wiggle room with more local banks for it.One thing that may impact the lender's ability to lend could be the Debt Service Coverage Ratio (DSCR), but as long as the property cash flows well then that shouldn't be an issue. 

I provided it to the bank and they upped my appraised amount by $100K. 

We would buy the land outright and then through our local bank connection that we've done deals with in the past have them help fund the build out with interest only until with hit a certain lease up %.

Is it worth the time to put offers on bank owned property?

If the window will not stay in the open position, an inspector, who checks that specific window, will fail it and require repair in most jurisdictions.  

Local bank financing would require an additional $350-$500k towards the down payment.