In this case, your monthly payment with 20% down will have a good MARKET rate if your DTI works with a much lower month payment and no mortgage insurance(MI).

With that, if I were the seller, I'd ask for a little more than the current market value of the land.

@Placeholder Placeholder, I've financed quite a few STR's in the St Pete market.

That does not sound like a good market for new construction if nobody else is doing it there. 

Where I live, we still have a severe shortage of homes--median time on market is still 7 days and it would likely be shorter if not for delayed negations being the norm. 

So, I talked to the current tenant got her bills (I knew how much they would be roughly since I had a rental up the street I was remodeling to get on the market).

Quote from @Treza Edwards: I would be looking at this as a market-dependent change.

You’re absolutely right—speed is such a critical factor in securing deals, especially in a competitive market.

This doesn't seem like a good marketing strategy to me though. 

If the market moves against you, it takes too much capital to fix it.Contrast that to this scenario:  let’s say that the acquisition loan was 60% LTV originally, and after a market drop of 30% the loan is now 85%.