This gives you the flexibility to find a deal on your own timeline and to act quickly when a deal does come up because you won't need to get bank approval to use the line of credit. 

A "lake house" might be in a residential zoned area where a commercial use would be prohibited or at least require a variance (approval) to make an exception.

With actual cash, you just transfer it. yes, but you can still bid with lender approval - without appraisal contingency - you send in deal (app), it gets approved by lender its functionally the same as cash (except in true lightning speed situations where there is a quick auction with little time to prep but thats generally pretty rare I'd think)Right, but that's not cash or functionally the same as cash because the lender can change the terms at the last minute, as often happens with less experienced hard money lenders.

So it takes comprehensive knowledge of the market trends, zoning laws, the local municipalities approval process, survey cost, subsoil conditions, irrigation requirements, development cost, utilities (gas, power and internet), city water or well water, city sewer or POSW to name just a few...A builder developed the farm field next to our SD, bought it for $1.5M and wanted to build 25 homes as a conservancy subdivision.

Sometimes they can find creative solutions or know the right way to present your case to get approvals. 3.

HUD performed extensive due diligence on us, and had to approve us as buyer's and our management company and mangers.

Have you been pre-approved or are you paying cash?

This section should outline the process for documenting and approving changes, as well as their impact on the budget and timeline.

Is it possible for her to buy the house/land then we subdivide the property (property has an approved preliminary plat for subdivision into 2-3 separate lots, electrical and pluming lines have been put in place for future development).

Under stabilization, rent increase approvals run at most 5% for a 3-year lease.