I know that some consider a 1031 into 'raw land' as a placeholder-I believe your costs are very limited if you go this route. 

Also what you should know about appreciation and cash flow market.Appreciation market is typically having 1:1 to 1:2 supply-to-demand ratio.Cash Flow mrket is typically having 1:15 to 1:30 supply to demand ratio.You can extract this kind of data from raw MLS listing itself.

Little to no excavation required, but relining is not DIY either IMO.Some related topics:http://www.biggerpockets.com/forums/30/topics/41955-water-and-sewer-under-pads-http://www.biggerpockets.com/forums/84/topics/12435-raw-sewage-treatment

If I am converting raw land into individual lots and selling them, is it required to hold the lots for a minimum of one year?

They range from rentals to raw land.

I am in need to contact raw land owners in a very specific area within specific county of a certain State (MD) - interested in buying a lot to build a house on for myself.

Real estate" is not one business or one type of investment, it is a number of related businesses or investmentsResidential, multi family, office building, warehouse, mixed use, retail, recreational, raw land, tech centersLarge, medium, small, microUrban, suburban, small town, rural, exurbsbDifferent states, different metropolitan areas, different cities, different neighborhoods, different blocks, different demographicsDifferent property age, different architectural style, different fixed expenses, different financing, different tenant mix, different tenant demandSingle net lease, double net lease, triple net lease, CAM, building allowances, rent holidays, lease length, buyout provisions, personal guarantees, lease renewal, cost of living increases, flat percentage increases, Different loan amortizations, fixed interest rate, variable interest rate, balloon payments, fully amortized, institutional loan, private loan, seller carry backBuy and hold, fix and flip, syndicate, partner, joint venture, self manage, professional manager, management company, leasing company, in-house leasing, real estate agent, licensing requirementsFederal laws, Federal regulations, state laws, municipal laws, rent control, eminent domain, set back requirements, utility easements, property taxes, special tax assessments, development districts, water districts, utility bondsPassive investing, active investing, portfolio income, business income, retirement funds, ERISA regulationsAsbestos, Clean Air Act, Environmental Super Fund, pollution control, water runoff, Flood plain, floodway, Flood control, Flood insurance, endangered species, wet lands Zoning, Planning Board, building permits, occupancy permit, community board hearings, noise ordinancesEviction laws, foreclosure laws, bankruptcy laws, civil liability, fair housing, tenant rights, disclosure laws, loan modification laws. 

On a rental I would spec the following:   heavy degrease, light scuff sand (don't blow through to raw wood) , 2 coats of SW pro industrial enamel (used to be Frazee arothane).

Land entitlement is a big business, largely due to all of the legalities involved and the complexity of getting raw land into a shovel-ready condition.Something to bear in mind - big investors frequently do not have all of the money they need to do their deals.

Raw materials have gone nuts as you know firsthand.That's why I started buying in the first place.