He determined the price and terms for the property, and according to the agents involved, he consulted with accountants and attorneys before signing the contract.

Since I cant account for what their money cost,I have found that is the biggest flaw.

If you're buying it shortly and THEN after you own it will it be ready and available for rent-the costs will be capitalized and accounted for with the basis of the property as well (when you eventually buy it). 

Study the market.

I’ve spent years studying everything to do with investing in houses and then this opportunity to buy land came up and I just jumped.

You can still get positive cash flow even accounting for a PM - tons of my clients do as well!

Just spoke with a business dev rep from BAM today, good conversation, said theyre not worried about rates right now and have plans in place to account for them. 

That's because the city won't calculate the actual amount till a structure is built, aka it's not just a plot of land anymore.This will obvious cause your property tax bill to go up and also your mortgage escrow account as well (sometimes these things can make your mortgage shoot up a few hundred a month). 

MLS usually get's you the highest price but you need to account for the higher closing costs.

My estimates are also accounting for $20,000 in septic (not included in the $400k number).