If you have appetite for more risk, and have a trusted developer, this might be where more of the adventurous money can go.

And if you converting to 3 units or more they may have you install fire suppression system (sprinkler system) that may be very costly. 

@Rich Hanlin every lender is different and have different appetites, offer different returns and have different requirements so you will need to shop several.They will look at the property in terms of the cashflow to cover debt service. most will want 1.25 min DSCR they will look at your credit and financial strength including income and  cash reserves to qualify as the guarantor.

Syndication allows him to go out-of-state and where the returns are strong enough for his risk tolerance and appetite.

Selling premium in the derivatives market can be a consistent income generating strategy for those with a low risk appetite.

That is, what is my appetite for cash flow vs appreciation.

@Peter Slivkoff I would say it just depends on your investment strategy and your appetite for risk.

I guess the size of the lot might suppress the value, so I should adjust my estimated appraisal value to $225,000+?

but the local appetite for raw land is not hot at all.Can some one tell me what I can sell a 15 year land lease for with $4,000 (or any number) a month coming in?

Lenders with greater risk appetite, such as private/hard money lenders, will be more willing to lend against short term market appreciation.