It's similar to an FHA loan, where you are buying it with the intention of living in it.

Here are the playersMe - OwnerOG Developer - Original Developer that improved property before I purchasedNew Developer - New Developer currently building a new subdivisionWater District - Own the vacant land that my sewer line runs acrossCity - Well, The cityTimeline:2007 - OG developer purchases large 1 acre lot with an existing house with the intent to subdivide and create a small PUD.2008 - Improvements are made (new street, sewerlines, storm, power, water) are brought into the subdivision. 

Having intentionality in your actions and goals set to enable you to reach that 1 real estate transaction milestone is important and will ultimately help you reach that sooner. 

I bought my condo in July 2023 as my first property with the intention to rent it out in 2 years (June 2025).

The fact its in a landbank tells me that it was taken back for some reason, which tells me its likely not a high commercial demand for development, but I could be wrong.If it is "on the main drag" in this town then I'd think doing a new build home to do a targeted and intentional air bnb would be the best bet. 

This could encourage unpermitted units which is not the intent of sb13, but an unintended consequence.

Quote from @Kwok Wong: Letters of Intent are different for everyone.

We actually live in our ADU while we rent out the main house and the intention is to rent out both. 

Be careful of some of the lending requirements that may ask what your intention of the purchase is. 

His attorney to.d him they should file against me with the intent to squeeze “seed capital” from me because I would pay to avoid disclosure problems in the capital raise.