Continued new construction in the area will suppress the value of your purchase, but not depreciate it.

Some lenders have more appetite towards certain properties and Risks then others. 

It is all about risk appetite a smaller profit is still a profit instead of a loss. 

Bc it's Philly, so close to NYC, the appetite for OZ investors is likely closer to the institutional level, $3-5M+.

I cannot advise as to what you should or shouldn't do since very investor has a different appetite for risk.

City impact fees per unit Utility infrastructure fee per unit, fire suppression whole building, closing cost, permit fee, engineering stamp fees, fire walls before you buy a single brick.

For example, a lender might be limited to 65-70% of the after-repair value of the property per his/her individual appetite for risk.- What is your exit from the loan?

If you have an appetite for new construction or buying existing with a deep lot and adding an ADU, that might be a good play.

But first you have to look at yourself and assess what your appetite for risk and what you can actually spare money-wise to apply towards real estate investing.  

Larger new development projects you have to look at the timing in the cycle and the appetite by the city, county, state, national government for it to help with funding and development cost offsets.Those types of deals you can win big or lose everything.