My understanding is that you're calculating a percentage of your rental income. 

Conventional guidelines deem condo projects ineligible if one person or entity owns a certain percentage of units in the complex. 

Hi Daniel,I believe in order to get a home equity loan, they would only be able to give you a percentage of the value minus the current debt on the property.

Now that you've screwed around with the percentage rules, analyze this deal with the numbers that really matter...the ones with actual $$$ signs in front.

If you use that parcel as a comp, you have immediately shot yourself in the foot before you even get started.This thought process is the same in an urban environment, but the tract size is fractional (dollar for dollar) so the development costs as a percentage of project cost will usually drop (making it less influential).Sitting on land has its disadvantages:- Property Taxes- Insurance - Maintenance (grass?)

Worst case find a percentage that works that allows you to still cash flow.

Cashflow expressed as dollars doesn't care how much you've invested, it has no percentage aspect to it and is utterly subjective.

A complex right next door may have different qualification issues (owner-occupant percentage, reserves, lawsuits, etc.). 

Eventually you might lose out on a check as the move-in slowly transitions from the 1st towards the 30th, but that'll take years if you always have quick turnarounds.PM Monthly Percentage vs.

Are they getting a profit/loss percentage of the profits of the deal you are in?