@Jaskanwal Preet Singh ChhabraRefinancing a converted property for coliving involves appraisal, loan types, interest rate reduction, and careful planning.

If you go to the appraisal district website, you will find the county's appraised value of the home, which rarely reflects the actual market value of the home. 

If your land appraises at $400,000 and your bank will use that as collateral you can do a $1.6mm deal.  

I have title and appraisal experience, so comps, etc don’t worry me  The one thing that is giving me heartburn is estimating rehab costs… good deals move quickly.

@Ethan Anderson a commercial appraiser can give a valuation on an easement. 

Even if there isn't a lease in place, underwriting can use market rents from an appraisal to qualify.

Higher Fees and Costs: Cross collateral loans may come with additional fees, such as appraisal costs for each property involved, which can increase the overall cost of borrowing.In conclusion, while cross collateral loans can provide valuable opportunities for accessing larger amounts of financing and potential cost savings, they also come with considerable risks and complexities that borrowers must carefully consider.

ARV: Be conservative on your ARV since the appraisal concerns one person’s opinion.Timeline: Whatever a contractor says, add 4-8 weeks and budget for those holding costs. 

Quote from @Donald Hatter: I would buy a $400,000 new construction home which could appraise for $430,000 to $450,000. 

You have to go inside the comps to understand how they compare to subject property, which is what competent agents and appraisers do.