I basically just told my realtor that we’re gonna start giving them a taste of their own medicine.

Prime Rate: An artificial rate set by commercial bankers.

That's why I subscribe to the philosophy of not creating artificial vacancy, and will ride a tenant in a distressed unit for as long as possible, because as soon as they leave, I'll have to spend $10-20k to get the unit in rentable condition again.  

The problem is, as was found out by another investor in Memphis that is on BP, a nice house with too high a rent cost will artificially drive up the vacancy rate.

The construction costs of the building would likely be paid off in 4-5 years.I believe our lower property taxes possibly give us a competitive advantage redeveloping ourselves versus selling to an outside developer.Here's my question/idea.To keep the land portion of our property taxes at the artificially low rates could we retain ownership of our respective parcels while forming a separate LLC or partnership that would construct and own the building? 

If you leave any small detail up to them, they'll put light switches in the middle of rooms, medicine cabinets not centered, doors opening the wrong way,,,, they are all about the easiest, not what's right.  

Just playing devils advocate to those who say the market is artificially stimulated and many real estate buyers are foreign investors and hedge funds looking for yield.

However in your case you're really trying to shorten the time frames down to artificially match a flipping model.I'm thinking that your intent then could very well be interpreted that you never had the intent to hold for productive use.  

Historic properties sometimes have tax benefits (tax credits, artificially low property tax rates, etc.).

It's very possible that her family came, saw all the trash, and only took a couple items like maybe medicine.