This would be our first attempt at land financing, so we are wary about proceeding. 

I'm not down and out myself and might struggle with it too depending on timing, like for instance tax time when I have to write a massive check to the IRS.I also think it is natural for a person attempting to rent a new place to do some desperate things at that time, that they might not otherwise ever do, such as make a promise they know they might not be able to keep.

We have been attempting to get the contract extended but the owner will not sign until a bank provides a letter stating that they will fund the project.  

If I do my target area research and price right, FSBO can go on MLS and can do well, better than what I did with my previous attempt when I had an agent. 

@Adam Sharp how are you attempting to level the bow?

You can attempt to have them sign a new lease, but they can choose not to.

This local BRRRR is more likely to succeed than attempting an OOS BRRRR.  

It almost looks like some people are getting a bid greedy or attempting to take advantage of people not in the area.  80k-100k in C or worse neighborhood. 

I have secured a buyer's agent and am attempting to move forward with the deal.

In your experience, if any, in polk county what sort of % reduction would you attempt to take off the asking price We are thinking of between 10-15% off asking as a starting point