Not sure which market in Ohio that you're looking into but in case it's Cleveland you'll want to give The Ultimate Guide to Grading Cleveland Neighborhoods a read.

The structure costs are pretty black and white and would apply to almost any lot, only difference is in the grading or export/import of dirt and/or quality of the soil. 

What grade would that neighborhood (1600 block Druid Hill Ave) I mentioned be rated?

Not to mention the property is likely in a C grade neighborhood (even though they tell you they're not) and the only people who will live there will be hell to deal with.After all that your returns probably will be moot.

Or does the MLS actually use a grading system?

For more info on the neighborhoods and their associated risk level check out The Ultimate Guide to Grading Cleveland Neighborhoods. 

I would love to develop this empty lot like other people are doing in the area and I’ve gotten some rough quotes of $125 - $200 / sq ft to build a house from the ground up  $125 being builder grade and $200 being high end    .

They might leak, but usually that's just grading and erosion issues that can be remedied easily.

Finished the 8th grade.  

I showed my newbiness off the bat by using terminology above my pay grade!