That is permits, surveys, etc. necessary to just start the construction process cost ~$100k.Another option is to invest with a syndicate. 

The cash flow seems a little low, did you do a rent survey and give the units a little premium since they will be brand new?

Here are the details:Purchase Price - $3,500,000Earnest Money - $35,000DD Period – 60 Days after DD items receivedClosing date – After August 1 & Before September 1Title/ Closing Costs – ALTA Survey @ Seller’s expense (if required by lender)I purchased the building about 20 months ago and here are the numbers (back of the envelope).Original purchase price: 2.95MLoan amount was 1.84MPrincipal paid to date is 57KPrincipal down: 1.1MProceeds from sale - loan = 1.716Mcommissions: 175K Net in our pockets (not including closing costs): 1.525MGains from initial investment: 441KWe have to do a 1031 exchange to our next property.

So I pitched it to them, but I also told them that I believe we should have the land surveyed splitting it into 4 parcels.

Maybe punch back with an OWC offer--and a home inspection done by a proper home inspector with a written report, plus a survey to know if you have one lot or two (one transaction or two).You will probably want a local closing attorney who knows how to make this happen safely for you (draw up the needed paperwork, deed(s), etc....And if you are not a Hammer Swinging type guy, you will probably want to get bids to do the Fix-ups you want to have done when you take over. 

A great PM will also interview you, so be prepared to fill out a survey - managing unrealistic expectation is a major component of any PM's daily challenges.

Our leads either call us or fill out a survey.

Make sure you have enough saved to at least cover your soft cost ( plans, permits, engineering fees, survey, etc).3.

Without mentioning your specific situation or property, I would survey various financial institutions and see which would be better-to refinance as a personal residence or as investment property.

Regarding the rent issue: I can't be sure if I have ever done an appraisal for a dscr loan specifically (we wouldn't necessarily know), but I have done a ton of rental surveys for lenders.