Since you're refinancing the parcel with the house, they may still use the original purchase price, but that really would be a question for the lender who will be funding the loan since this is not really a common or typical scenario.The other issue is will you be able to subdivide this property and close a loan on it within 6 months?  

I'm in the process of doing a FULL rehab on two houses that are on one parcel.

Just food for thought.  

The tenant left feces on the freshly painted walls and the new carpet, left a huge trash bag full of rotting food in the house, with maggots all over it. 

Food for thought.  

We then started keeping our dog food (which was in the house) in a sealed container and asked our tenants to do the same. 

When I did the title search I see the original loan on the date of purchase for 165k but then I see another one dated March 2015 for 177k to the same parcel number.

Anyway, just food for thought! 

But in areas that are less dense that may not have sidewalks, the LTIC is a HUGE barrier to developing lots that might be dividable into 2 or 3 parcels, making increasing density in those areas financially infeasible.  

Just some food for thoughts.