At the same time my wife and I are in the very beginning phases of building my family home.

Additionally I would add a benefit for you is that you're in great area to be able to invest locally and can invest in your own back yard as they say.

Of course to maximize your tax benefit it needs to be sustainable over time. 

Many lenders allow for low-down-payment options if the rental income covers the loan.You’re approaching this deal thoughtfully, but be sure to communicate the benefits of your offers clearly to overcome resistance from the seller's representative.

I prioritize appreciation, tax benefits (rental property expenses, depreciation), ability to use leverage, and passing on generational wealth with real estate. 

What are the limitations and benefits?

Land Ed is one phase of ground-up development.

If before getting a permit you have to dance around for Code Dept officials/ city gov and crime is thru the roof, investments will definitely be low whether real estate or other, but it should be benefiting the city officials to keep things that way.

Hopefully, based on actual field measurements, past project data, and estimating software, your contractor can develop a detailed estimate that lays out the cost of labor and all materials for each phase of the project.

So there could be benefits from starting a new lease for that reason.