The data may be old, the broker may be BS'ing you (nothing like a low land development budget to make the high price for the land purchase look reasonable).

A good problem to have, taxes from high income.I buy and hold RE long-term for depreciation and no SE tax on the passive income,  I buy property with low land value and have depreciation coming out my ears. 

@Bishwash Aryal my CPA said “choose an area with low land values compared to the building value so you get more depreciation” but of course that’s for my situation; you should ask your own accountant whether it applies to your biz.

Let's say we have a $30 million property in an area with low land values.

There is required insurance if you are in a designated flood zone, such as coastal, river lowlands, etc; and then there is coverage for sewer backups, burst pipes, roof leaks/damage causing interior water damage, etc.

I have connections to some forested land (about 45 acres, some of which is wet/lowland) in rural, northern Wisconsin that is across the road from a public boat landing on a beautiful, clean lake.

Even at 100 sq ft each one should be able to squeeze out 8 rooms at least and still have a 2 toilets, 1 bathroom and an ample kitchen for everyone.  8 x $500 or so is mighty great for such an investment in an area with relatively low land costs (say $150,000 - $200,000). 

I have been a buy and hold investor up to now but the New Orleans market seems so hot I'd like to try my hand at flipping but also worried about the low land issue.

But I have 0 earned income and buy property with low land value on purpose.This year I will have to move the pea a little bit to be under a different shell because of a couple sales and a couple less mortgages. 

But even with your low land prices, I'm amazed that you did all this with only $200k into it.