Bring all of your documentation: Information on comparable homes (records are available on the appraisal district’s website), perhaps an independent appraisal if you recently refinanced your house, or photos, repair estimates and other records showing damage that may devalue your home.

This devalues the original house and cramps privacy.

To lesson my risk I typically focus on 1) Location (limited supply, growing population, growing jobs, affordable), 2) Was the underwriting conservative - most good syndicators already devalue the CAP rate when doing analytics 5 CAP at entry, 6 at exit, so all the value is driven by increasing NOI vs appreciation, 3) Already Cash flowing/CAP rates not too crazy 4-6 for a class B asset - I put 80% of my deals in cash flowing assets so you can just cash flow and hold long term if needed. 

I am aware that this can actually devalue the property, but we are not concerned with that part, as this will be a long term investment.

If the market bobbles a little, you run out of capital or desire to finish the project, or something happens with the first lien, that second lien holder is wiped out by default interest or devaluation in the market. 

Even if it could you would have other competition in the market and have the extreme risk of a big REIT coming into your market and devaluing your operation.

I am betting that inflation will have a compounding devaluation of the dollar that I have in my pocket today. 

Again do a subdivision to control house types, so not devalued by a junk yard and trailers. 

No, not mission economy like Iraq I & II, we are talking WAR, state level mass scale such as WWII which empowered the U.S. ability to inflate it's way out of inflation, because your creating economic basis via inflation where normal inflationary actions devalue, in War Economy inflation builds tangible economic base. 

The template lease has a lot of pitfalls that will devalue the underlying ground and lease value if your friend ever wants to sell it.